Utah's Digital Ad Tax Faces Legal Battle | Salt Lake City News

Salt Lake City News Today | 2 Min News | The Daily News Now! · Aug 5, 2026 · 2m

Utah’s poised to slap a 4.7% tax on targeted digital ads—aimed squarely at Big Tech—to fund youth programs, sparking a legal showdown with the Utah Taxpayers Association, which argues the move violates federal internet tax law and will ultimately cost consumers. Senator Mike McKell defends the tax as a necessary response to tech giants’ data-mining practices targeting kids, while accusing the Taxpayers Association of secretly being funded by the very companies it claims to oppose. The association, tight-lipped about donors, insists the lawsuit is essential to uphold its principles—even if it…