Herbert also signed a $76 million increase in property taxes, designed to help bring funding for rural schools up to par with those in more affluent, urban areas.
Some saw both tax hikes, coming in a year when the state experienced a huge surplus, as unnecessary. But Herbert said the tax increase will help ensure Utah's long-term transportation needs can be met.
"A strong transportation infrastructure has played a critical role in our economic growth and it will continue to do so thanks to this bill," Hebert said in a statement.
