Utah Porn and Ad Taxes Would Boost Litigation More Than Revenue

"The proposed Targeted Advertising Tax in Utah is imposed on advertising that is bought, delivered, accessed, or interacted with using the internet, raising concerns about its legality under the Internet Tax Freedom Act."

"The tax targets advertising that meets specific conditions, including the use of individualized data profiles and user interaction, which aligns with the definition of electronic commerce under federal law."

"Exemptions in the bill protect smaller advertisers, allowing those with less than $1 million in Utah advertising or less than $100 million in targeted gross receipts to avoid the tax."

Utah's Senate Bill 287 proposes a Targeted Advertising Tax on internet-based advertising that uses individualized data profiles and allows user interaction. This tax could conflict with the Internet Tax Freedom Act, which restricts state taxation of electronic commerce. The bill includes exemptions for smaller advertisers, aiming to protect local businesses. However, the tax's design appears to target electronic commerce specifically, raising concerns about its legality and potential challenges under federal law.

Read at Bloombergtax