 | Fiscal NoteS.B. 287 2026 General Session Targeted Advertising Tax by McKell, Michael K. |  |
| Ongoing | One-time | Total | |
|---|---|---|---|
| Net GF/ITF/USF (rev.-exp.) | $(1,900) | $(900) | $(2,800) |
| Revenues | FY2026 | FY2027 | FY2028 |
| Dedicated Credits Revenue | $0 | $156,800 | $156,800 |
| New Account Created By Bill (FN Only) | $0 | $21,300,000 | $21,300,000 |
| New Account Created By Bill (FN Only), One-time | $0 | $(21,300,000) | $(6,100,000) |
| Total Revenues | $0 | $156,800 | $15,356,800 |
Enactment of this legislation may increase state tax revenues deposited into the Targeted Advertising Tax Restricted Account by an estimated $15.2 million in FY 2028 and $21.3 million in FY 2029. Enactment of this legislation could also increase ongoing dedicated credits to the Attorney General's office by $156,800 beginning in FY 2027 for services provided to the Tax Commission.
| Expenditures | FY2026 | FY2027 | FY2028 |
| State Tax Commission Administrative Charge Account (GFR) | $0 | $490,700 | $490,700 |
| State Tax Commission Administrative Charge Account (GFR), One-time | $0 | $(258,000) | $534,700 |
| Dedicated Credits Revenue | $0 | $156,800 | $156,800 |
| General Fund | $0 | $1,900 | $1,900 |
| General Fund, One-time | $900 | $0 | $0 |
| Total Expenditures | $900 | $391,400 | $1,184,100 |
Enactment of this legislation could cost the Tax Commission $490,700 ongoing beginning in FY 2027 from the State Tax Commission Administrative Charge Account for staff support to implement and operate the program and for Attorney General services. Staffing will be phased in resulting in a one-time back out of $258,000 in expenditures. Enactment of this legislation could also cost the Tax Commission $534,700 one-time in FY 2028 from the State Tax Commission Administrative Charge Account for system updates and testing. Enactment of this legislation could also cost the Attorney General $156,800 in dedicated credits beginning in FY 2027 to support the Tax Commission, and the Department of Government Operations $900 one-time in FY 2026 and $1,900 ongoing beginning in FY 2027, from the General Fund, to set up maintain the new account.
| FY2026 | FY2027 | FY2028 | |
| Net All Funds (rev-exp) | $(900) | $(234,600) | $14,172,700 |
Enactment of this legislation likely will not result in direct, measurable costs for local governments.
Enactment of the new tax in this bill is estimated to increase tax liability for certain entities that deliver targeted advertising in Utah by $15.2 million in FY 2028 and $21.3 million in FY 2029.
Enactment of this legislation could result in a small increase in the regulatory burden for Utah residents or businesses.
This bill does not create a new program or significantly expand an existing program.