SB 245 Utah Senate · 2026 General Session

Impact Fee Amendments

SB 245 amends definitions related to impact fees, specifically clarifying what constitutes a "service area" for fee calculation. It prohibits entities from including an entire local political jurisdiction served by a private entity within a service area after May 6, 2026, preventing broad fee imposition. The bill also defines "specified public agency" to explicitly include the state. This directly affects local governments and developers who impose impact fees on new construction, restricting how they can define geographic zones for those fees. The changes focus on refining fee structure rules without creating new financial obligations.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 4, 2026 Last action Mar 7, 2026

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What changed between versions

Amended Excerpts 2/17/2026 10:02:591 → Amended 2/17/2026 10:02:591 · 5 edits

MODERATE

This bill amends definitions and requirements for impact fees in Utah, clarifying what entities and facilities qualify for impact fee service areas and specifying when fees can be imposed. The changes update terminology and add specific criteria for what constitutes a 'development activity' and 'development approval' to ensure fees are properly tied to new construction and infrastructure needs.

Scope change

The bill modifies the scope of impact fee applicability by refining definitions of service areas, affected entities, and development activities, which determines when and where local governments can charge impact fees.

DEFINITION

Updated the definition of 'affected entity' to clarify which organizations can impose impact fees and excluded entities that must provide notice under existing law.

Added detailed definition of 'development activity' to specify what construction or land use changes create demand for public facilities.

Expanded 'development approval' to include various authorizations from local governments, water suppliers, and sewer authorities.

Introduced new definitions for 'expense for overhead' and 'hookup fee' to clarify what costs and fees are excluded from impact fee calculations.

REQUIREMENT

Restructured the definition of 'service area' to require designation based on sound planning or engineering principles rather than allowing entire political subdivisions to be included.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 17, 2026

Upper · Passed

Senate/ comm rpt/ amended [Senate Revenue and Taxation Committee]

upper

Feb 13, 2026

Upper · Passed

Senate Comm - Favorable Recommendation [Senate Revenue and Taxation Committee]

upper

Feb 13, 2026

Introduced

Senate Comm - Amendment Recommendation [Senate Revenue and Taxation Committee]

upper

Feb 4, 2026

Committee

Senate/ to standing committee [Senate Revenue and Taxation Committee]

upper

Feb 4, 2026

Introduced

Senate/ 1st reading (Introduced)

upper

1 primary · 0 co-sponsors