Koosharem, Utah to Impose 6% Energy Tax Starting April 2026

New municipal tax will apply to sale and use of taxable energy in the city

Published on Feb. 12, 2026

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The Utah State Tax Commission has announced that Koosharem, Sevier County, will impose a 6 percent municipal energy sales and use tax on the sale or use of taxable energy, effective April 1, 2026. This tax is allowed under Utah state law, which permits cities and certain special districts to impose a tax of up to 6 percent on the delivered value of energy.

Why it matters

The new energy tax in Koosharem will impact both businesses and residents who use taxable energy sources, potentially increasing their costs. It reflects a broader trend of local governments seeking new revenue streams, especially related to energy and utilities.

The details

The 6 percent municipal energy sales and use tax will apply to the sale or use of all taxable energy sources in Koosharem, including electricity, natural gas, and other fuels. The tax is authorized under Utah Code Ann. § 10-1-304, which allows cities and certain special districts to impose a tax of up to 6 percent on the delivered value of energy.

  • The new 6 percent energy tax will take effect on April 1, 2026.

The players

Utah State Tax Commission

The state agency responsible for administering and enforcing Utah's tax laws, including authorizing municipalities to impose certain taxes.

Koosharem, Sevier County

A city in Sevier County, Utah that will be imposing the new 6 percent municipal energy sales and use tax.

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The takeaway

The new energy tax in Koosharem reflects a growing trend of local governments seeking additional revenue sources, particularly related to utilities and energy usage. Businesses and residents in the city will need to factor in the 6 percent tax when budgeting for their energy costs starting in April 2026.