Lawmakers tried to fix the formula during the legislative session earlier this year, but Rep. Johnny Anderson, R-Taylorsville, the sponsor of the gas-tax bills, said it became clear that they had overcorrected.
Many cities complained that they were receiving well below the 17.5 percent increase they had been promised as a result of the tax increase, but a few small counties were getting a windfall.
The state froze the final quarterly disbursement of the payments from the gas tax, and legislative leaders told the Utah Association of Counties and the Utah League of Cities and Towns to work out a compromise, which was adopted Wednesday.
Twelve counties will share $3 million in state funds and another $2 million in road funds to ensure that they don't see a reduction and to create a "soft landing" for all but two counties — Kane and Garfield — which will receive additional money after 2017.
"The Legislature is not going to be sucked in again, right?" asked Sen. Kevin Van Tassell, R-Vernal, who sought to ensure during a Transportation Interim Committee meeting Wednesday that the new bill would fix all relevant problems.
"We have run the numbers this time," said Lincoln Shurtz, of the Utah Association of Counties. "We have independently verified the numbers."
Cameron Diehl, of the Utah League of Cities and Towns, added that the Utah Department of Transportation and the Utah auditor's office also verified that the new bill will distribute funds according to the groups' compromises.
Anderson said the new bill will not provide cities all the money they expected, but will mitigate the problems with the regular-session bill and come close to what was promised. He said it will also help create a "soft landing" for counties that had been given more this year but will not get the gas-tax spike in future years.
As an example of problems some cities faced, Midvale Mayor JoAnn Seghini recently said her city received $71,215 less than expected this year from gas-tax revenue. She cited that deficit as being among factors prompting Midvale to more than double its property tax this year.
The Utah League of Cities and Towns has said cities are being shortchanged by about $8.5 million because of problems with the gas-tax formula.
Sen. Todd Weiler, R-Woods Cross, voted for the bill, but he said he was doing so reluctantly because it meant that there would be $3 million going to roads, money that wouldn't be spent on other priorities in what is shaping up to be a tight budget year.
Weiler said he voted to raise the gas tax in hopes that the Legislature could stop siphoning money from other programs, "and now we're just raiding it further."
Anderson said that, contrary to what some have argued on social media, the bill that passed Wednesday does not raise taxes. "We are benefiting from that awesome tax increase" from last year, Anderson joked with his House colleagues. "Now we're trying to solve the problem."
House Speaker Greg Hughes, R-Draper, praised the league and association for working through the thorny issues to reach a consensus.
"When we realized how far apart the rural counties were — versus what the Wasatch Front counties and cities thought it would be — this had all the makings of a political mushroom cloud, where people were going to try to rewrite this," Hughes said. "All the good work we did was going to be thrown out the window [and rewritten] based on political muscle."