Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Utah.
June 2, 2026
Utah Enacts New Tax on Targeted Advertising
Authored by: Breea Boylan, CPA and Courtney Easterday, MSA
Utah Governor Spencer Cox signed Senate Bill (SB) 287 on March 25, 2026, enacting a new Targeted Advertising Tax under Utah Code Chapter 59-35. Beginning Jan. 1, 2027, the state imposes an annual tax on “targeted advertising entities.” A business is a targeted advertising entity only if, during the taxable year, it delivers targeted advertising to an audience in Utah and meets all three of the following thresholds:
- At least 50% of total gross receipts derived from targeted advertising.
- At least $1 million in gross receipts from targeted advertising in Utah.
- At least $100 million in gross receipts from all targeted advertising, regardless of location.
Under the statute, “targeted advertising” is a transaction in which the business delivers an advertisement for consideration and uses all three of the following: selling ad space to the advertiser through a bidding process, obtaining or developing individualized data profiles and an interactive element allowing the viewer to access information or make a purchase, such as a link or QR code. The tax equals Utah’s state sales and use tax rate applied to the entity’s worldwide targeted advertising gross receipts, apportioned to Utah by dividing Utah impressions by total impressions. The State Tax Commission administers the tax, and revenue is deposited into the Targeted Advertising Tax Restricted Account for child and youth programs. As with similar measures elsewhere, the tax may face challenges under the Internet Tax Freedom Act, the Commerce Clause and Due Process.
If you have questions about state taxes on digital advertising, please reach out to a member of the Withum SALT Team.
June 2, 2026
Utah Enacts a 2% Sales-Based Excise Tax on Specific Digital Transactions
Authored by: Breea Boylan, CPA and Courtney Easterday, MSA
Under S.B. 73, effective October 1, 2026, Utah has enacted a new 2% sales-based excise tax on the sales price of certain digital transactions.
The tax applies to a “covered entity,” defined as a commercial entity required to perform age verification, and is imposed on amounts paid to or charged by such entity for access to specified digital content. This includes digital images, digital audio-visual works, digital audio works, digital books and gaming services, including amounts charged for streaming or subscription-based access to such content.
Covered entities are required to report and remit the excise tax electronically on the same filing schedule as their Utah sales and use tax returns.
If you have questions about excise taxes, please reach out to a member of the Withum SALT Team.
July 1, 2025
Utah Tax Commission Confirms Online-Streaming Product as Taxable
Authored by: Bonnie Susmano, JD, MBA and Brandon Spinella
A taxpayer’s subscription fee for an online streaming product and offline-download product has been deemed taxable by the state’s Tax Commission. Per Utah laws, products transferred electronically and bundled transactions are subject to sales tax. The subscription fee contained both offline-download and online-streaming products for a single subscription fee. The online-streaming product would be nontaxable if it was sold separately since it is not transferred electronically. However, the offline-download product would still be taxable, as the entire product is treated electronically. The taxpayer failed to separate the online-streaming and offline-download. Therefore, the entire subscription fee was taxable as a bundled transaction.
If you have any questions about the Utah sales tax laws, please reach out to a member of the Withum’s SALT Team.
October 24, 2023
Utah Tax Commission Announces 2024 Interest Rate for Taxes Deficiencies
Authored by: Bonnie Susmano, JD, MBA and Brandon Spinella
On October 1, 2023, the Utah State Tax Commission announced it would impose a 7% interest rate on tax deficiencies effective January 1, 2024. This interest rate applies to individual income, corporate income, trust income, sales and use, excise, and property tax. This prior interest rate on tax deficiencies was 5%.
If you have questions about state tax interest and penalties, please reach out to a member of the Withum’s SALT Team.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.
Have Questions or Need Guidance?
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