Utah Senate advances 4.7% tax on targeted advertising to fund youth programs

The Utah Senate advanced Senate Bill 287 on a floor vote after extended debate on whether to tax targeted digital advertising to raise money for youth programs. Sponsor Senator McCall described the measure as “a 4.7% tax on companies that do targeted advertising,” saying the proceeds would go to “child literacy programs, youth sports and recreation, youth volunteerism programs, mental health programs and services” and other youth supports.

McCall framed the proposal as a remedy to what he called an extraction of children’s attention for profit: “Our children are not commodities,” he said, arguing the state must act where companies have prioritized engagement and profits over child welfare. Supporters from both parties said the tax is consistent with prior public‑health‑style approaches to addictive products and would fund services to offset harms to young people.

Opponents, including Senator Johnson, cautioned against broad taxes that may burden startups, nonprofits and small businesses. “Taxing the infrastructure does not solve behavioral or data concerns,” Johnson said, urging targeted regulations or privacy standards instead of a revenue tax. Senator Fillmore — while sympathetic to protecting children — said he would vote “aye on 2” pending a fuller view of the state’s broader tax package and fiscal implications.

The bill’s sponsor and backers said the measure includes revenue thresholds and limits intended to narrow coverage to large companies that primarily earn from targeted advertising. The bill passed the third‑reading roll call that was read on the floor with a tally recorded as 24 yea and 5 nay votes.

Next steps: SB 287 was read for a third time and will be sent to the House for its consideration according to regular legislative procedures.