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SB 287

Targeted Advertising Tax

2026 General Session Introduced by Mike McKell and 1 co-sponsor

Utah tax on revenue from targeted digital advertising using personal data; signed into law March 2026 to fund state and address data privacy concerns.

Governor Signed
#revenueandtaxation #statetaxcommission
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Bill Summary · SB 287

Legislative bill overview

SB 287 establishes a tax on targeted digital advertising in Utah, requiring companies that collect and use personal data to target consumers with ads to pay a percentage-based tax on revenue generated from such activities. The bill was signed into law by the Governor on March 25, 2026, and represents one of the first state-level efforts to regulate and monetize targeted advertising practices.

Why is this important

This legislation directly affects how tech companies and digital marketers operate within Utah and could generate state revenue while attempting to address privacy concerns associated with data-driven advertising. The bill may influence business practices across the country, as other states often adopt similar models, and it raises questions about whether taxation is an effective policy tool for regulating data privacy and advertising practices.

Potential points of contention

  • Definitional clarity: The bill's success depends on clear definitions of what constitutes "targeted advertising" and "personal data," which could be subject to legal challenges and varying interpretations
  • Economic impact on businesses: Companies may pass costs to consumers through higher prices or reduced ad-funded free services, and startups may face disproportionate compliance burdens compared to large tech corporations
  • Interstate commerce concerns: The tax could face constitutional challenges under the Commerce Clause if it burdens out-of-state companies differently or if enforcement becomes difficult across state lines

Compiled from official sources — confirm details with the bill’s official record.

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