A buried provision in Utah's HB0008 will limit what you pay in convenience fees when filing with the state—starting in 2026.
Most Utah restaurant owners don't realize they're paying a hidden surcharge every time they renew a license or file paperwork with the state. That's about to change.
Buried in HB0008—a bill primarily about state agency fees—is a provision that caps the convenience fee charged by the Department of Commerce when you pay electronically. Starting July 1, 2026, those fees will be capped at 3% for transactions over $100, and at a flat $3 maximum for transactions under $100.
When you register a business, renew a food service license, file annual reports, or handle any other Commerce Department filing, you're required to pay a state fee. The state has allowed a private payment processor to collect a "convenience fee" on top of that—essentially a surcharge for paying online instead of by check or in person.
Until now, there's been no cap on what that convenience fee could be. Some processors have charged significantly more than 3%, turning a $50 filing into a $55 or $60 transaction. For restaurants managing multiple locations or frequent filings, those charges add up.
HB0008's provision, found in Section 3 on page 221 of the bill (which updates the Commerce General Regulation fee schedule), puts a hard limit on this cost. You'll know exactly what you're paying: no more than $3 on any transaction under $100, and no more than 3% on anything larger.
This applies to any business filing with Utah's Department of Commerce—which includes restaurants, food trucks, catering operations, and any other food service establishment that needs to register, renew licenses, or file required paperwork with the state.
It doesn't eliminate the convenience fee entirely (the state still allows processors to charge one), but it removes the uncertainty and prevents excessive surcharges.
The cap becomes effective July 1, 2026, at the start of fiscal year 2027, per Section 4(1) of HB0008. That gives the Department of Commerce and payment processors time to adjust their systems before the new rules apply.
You don't need to take action immediately, but it's worth noting this change for your records. When you file with the Commerce Department between now and June 30, 2026, the old fee structure may still apply. Starting July 1, 2026, watch your receipts to confirm the new cap is in place.
If you encounter a convenience fee above the cap after the effective date, contact the Department of Commerce to report it.
For restaurant owners managing compliance costs, this is a small but real reduction in the price of doing business in Utah. It's the kind of detail that doesn't make headlines but affects your bottom line.
Source: Utah HB0008, State Agency Fees and Internal Service Fund Authorization and Appropriations; Section 3, page 221; effective July 1, 2026.