Targeted Advertising Tax

The list of qualifying taxes in the State Tax Commission Administrative Charge Account was updated to include the new Targeted Advertising Tax (Chapter 35) and renumbered subsequent items to maintain correct sequence.

A specific definition was added for 'QR code' to clarify that targeted advertising includes advertisements accessible via links or QR codes.

Added a new Chapter 35 specifically for the Targeted Advertising Tax, defining the legal framework for the levy.

Created precise definitions for 'targeted advertising,' requiring the use of individualized data profiles and bidding processes to determine liability.

Updated the State Tax Commission Administrative Charge Account to include the new Targeted Advertising Tax as a qualifying source of revenue.

Removed draft formatting markers and placeholder text used during the legislative review process.

The definition of 'targeted advertising entity' was updated to require that the entity delivers advertising to an audience located in the state and that the audience has the ability to interface with the advertisement, such as through links or QR codes.

Adoption and foster care services were added to the list of eligible youth programs and services.

The management and improvement of parks and other public spaces were removed from the list of eligible program uses.

Line numbers and references were updated throughout the document to reflect the new structure of the bill.

The list of allowable uses for the Targeted Advertising Tax Restricted Account was updated to include 'adoption and foster care services' and to exclude 'the management and improvement of parks and other public spaces.'

Line 165 was amended to add a new item (e) for adoption and foster care services, and line 166 was amended to remove the previous item (e) regarding parks and public spaces.

Created a new tax on entities that deliver targeted advertising in Utah if they earn over $1 million from Utah ads and over $100 million total from ads globally, provided 50% of their total revenue comes from ads.

Defined 'targeted advertising' as transactions involving bidding processes, individualized data profiles, and the ability for users to interact with or purchase through the ad.

Established a new 'Targeted Advertising Tax Restricted Account' where tax revenues must be deposited for use in child literacy, youth sports, mental health, and park improvement programs.

Set the effective date of the tax to January 1, 2027, with the bill taking effect on May 6, 2026.

Updated the State Tax Commission Administrative Charge Account to include the new Targeted Advertising Tax as a qualifying tax for administrative fee calculations.