Big Tech Legal Fight Looming After Utah Enacts Targeted Ad Tax

Partner Jeff Friedman is quoted in Bloomberg Tax discussing Utah’s newly enacted 4.7% tax on targeted advertising revenue and the likelihood of legal challenges under the federal Internet Tax Freedom Act (ITFA). In the article, Jeff notes that the Utah law is likely to face scrutiny and warned state lawmakers against relying on the projected revenue while litigation risk remains. He noted that features of the Utah statute – including thresholds tied to internet-based advertising activity – could make it vulnerable to claims that it effectively discriminates against electronic commerce. The tax is scheduled to take effect January 1, 2027, as courts await a decision in the ongoing Maryland case.

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