Utah Governor Negotiating with Idaho Over Gas Tax Bill

Proposed legislation to restructure Utah's gas tax sparks cross-border dispute with neighboring state.

Published on Feb. 13, 2026

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Utah Governor Spencer Cox confirmed he is engaged in negotiations with Idaho officials over a bill in the Utah legislature that would restructure the state's gas tax. The bill, supported by Republican leadership, would lower the gas tax for Utah consumers but raise it on refineries, leading to concerns from Idaho that it could raise prices for Idahoans at the pump. Idaho's legislature has pushed back strongly against the proposal, with the House Speaker threatening to cut off water to Utah in retaliation.

Why it matters

The dispute highlights the complex regional dynamics and economic interdependence between neighboring states, especially when it comes to issues like fuel pricing and taxation. The outcome could have significant financial implications for consumers and businesses in both Utah and Idaho.

The details

The proposed Utah gas tax bill, which has not yet been made public, would cut the gas tax for Utah consumers but raise it on refineries. This has led to pushback from Utah's petroleum industry as well as strong criticism from Idaho, where officials fear the changes could result in $250 million in additional taxation for Idahoans. Idaho's legislature has passed a "memorial" resolution condemning the Utah bill, and the Idaho House Speaker has threatened to cut off water to Utah in retaliation.

  • On February 13, 2026, Utah Governor Spencer Cox confirmed he is involved in negotiations over the gas tax bill.
  • In recent weeks, the Idaho State Legislature has passed a resolution criticizing the Utah bill.

The players

Spencer Cox

The Governor of Utah who is negotiating with Idaho over the proposed gas tax bill.

Cal Roberts

A Utah state representative running the gas tax bill with the support of House Republican leadership.

Mike Moyle

The Speaker of the Idaho House of Representatives, who has threatened to cut off water to Utah in retaliation for the gas tax bill.

Mike Schultz

The Speaker of the Utah House of Representatives, who called Idaho's legislative maneuver "childish."

Brad Little

The Governor of Idaho, who has expressed concerns about the potential $250 million in additional taxation on Idahoans from the Utah gas tax bill.

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What they’re saying

“We will land that bill in a place where we can all be friends and what's good for the people of Utah and for the people of Idaho.”

— Spencer Cox, Governor of Utah (fox13now.com)

“There's ongoing discussions between their legislatures, our legislature, their governor's office and we're still waiting to see what is going to happen there. It would be a big deal if it happened because all the fuel in this valley comes on a pipeline from Salt Lake.”

— Brad Little, Governor of Idaho (fox13now.com)

“We have had some conversations with our friends in Idaho and we're working very closely. I have not seen a bill yet, the bill is not out yet. But I can tell you we've been very engaged with our legislative partners as well. I remain very hopeful.”

— Spencer Cox, Governor of Utah (fox13now.com)

What’s next

The Utah legislature is expected to release the full text of the gas tax bill in the coming days, at which point the negotiations between Utah and Idaho will likely intensify as both states work to reach an agreement.

The takeaway

This cross-border dispute over a proposed gas tax restructuring highlights the complex economic and political relationships between neighboring states, and the challenges that can arise when one state's policy decisions have significant impacts on its neighbors. The outcome could set an important precedent for how states coordinate on issues of regional significance.