Bill > SB0287

This bill establishes a new tax on targeted advertising, which is defined as a transaction where a business entity delivers an advertisement to an audience or individual on behalf of an advertiser in exchange for payment, and uses practices like bidding processes, individualized data profiles, and interactive advertisement features. A "targeted advertising entity" is a business that delivers such advertising within the state, generates at least $1 million in gross receipts from targeted advertising in the state and $100 million from all targeted advertising, and where targeted advertising constitutes 50% or more of its total gross receipts. The tax, effective May 6, 2026, will be levied annually starting January 1, 2027, at a rate determined by the state's sales tax rate, applied to the entity's gross receipts derived from targeted advertising within the state, with the state portion of receipts calculated based on the proportion of ad impressions delivered to Utah residents compared to all impressions. Revenue generated from this tax will be deposited into a newly created "Targeted Advertising Tax Restricted Account" to fund various programs including child literacy, civic information, youth sports, mental health services for children, adoption and foster care, and public awareness campaigns about the effects of targeted advertising. The State Tax Commission will administer, collect, and enforce this tax, retaining an administrative charge for its services, and may establish rules for its implementation.