State Tax Day - Current, S.12, Utah—Sales and Use, Miscellaneous Taxes: Tax Imposed on Certain Covered Entities Providing Content Harmful to Minors, (Mar 23, 2026)

Effective October 1, 2026, Utah imposes an excise tax on a covered entity that provides content harmful to minors in an amount equal to 2% of the sales price of covered transactions.

A "covered entity" means a commercial entity that is required to perform age verification under Sec. 78B-3-1002, Utah Code. A "covered transaction" means amounts paid to or charged by a covered entity for access to digital images, digital audio-visual works, digital audio works, digital books, or gaming services, including the streaming of or subscription for access to digital images, digital audio-visual works, digital audio works, digital books, or gaming services regardless of:

• the delivery method; or

• whether the amount paid or charged for access provides a right to: (i) single-use access to the digital images, digital audio-visual works, digital audio works, digital books, or gaming services; or (ii) access to the digital images, digital audio-visual works, digital audio works, digital books, or gaming services through a subscription, including a right that terminates upon the occurrence of a condition.

Collection And Administration

A covered entity that collects the tax imposed on covered transactions must remit to the State Tax Commission, in an electronic format approved by the Commission, the tax due in the previous quarter and the tax return. If a covered entity is required to file a sales and use tax return, the covered entity must file the excise tax return and remit the excise tax imposed in an electronic format the Commission approves on the same schedule as the covered entity's sales and use tax filing.

Records

A covered entity must maintain records of covered transactions to determine the amount of tax due for a period of three years.

Ch. 220 (S.B. 73), Laws 2026, effective May 6, 2026, except as noted