AI-generated summary, not yet reviewed by Better Utah staff. Please consult the bill text.

Starting January 1, 2027, this bill would create a new annual state tax on large companies whose primary business is delivering targeted advertising — meaning ads sold through a bidding process, personalized using individual data profiles, and interactive for the viewer (such as through a clickable link or QR code) — to people in Utah. The tax would apply only to companies that earn at least $1 million from targeted advertising in Utah and at least $100 million from targeted advertising nationwide, and for which targeted advertising makes up 50% or more of the company's total revenue. The tax rate would match Utah's existing state sales tax rate and would be calculated based on the share of a company's total ad "impressions" (each time an ad is shown to someone) delivered to audiences located in Utah, with affected companies required to file an annual return with the State Tax Commission. Revenue collected would go into a new restricted account that the Legislature could spend on child literacy programs, civic information programs, youth sports and volunteer programs, children's mental health services, adoption and foster care services, and public awareness campaigns about the effects of targeted advertising on children and families.