Utah Imposes 2% Excise Tax on Digital Content to Fund Youth Mental Health Programs

Utah will impose a new 2% excise tax on certain digital content sales starting October 1, 2026.
The tax applies to digital images, audiovisual works, audio works, digital books, and gaming services, including subscriptions and streaming.
Only “covered entities” that must perform age verification for content harmful to minors are subject to the tax.
Tax revenue will fund mental health programs for minors and enforcement of age-verification requirements.
The tax adds compliance complexity for digital sellers, especially those with multistate operations and subscription models.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.