Effective July 1, 2026, Utah sales and use tax will apply to many digital goods regardless of delivery method. The newly taxable items include digital audiovisual works, digital books, digital audio works, prewritten computer software, and gaming services. The tax applies to charges for streaming and subscription services, whether the amount paid is for single use or ongoing access to digital products, whether access is permanent or if downloading occurs. The tax is also levied whether items are delivered electronically, via load-and-leave, or when software is seller-hosted. Utah defines “seller-hosted prewritten computer software” for purposes of this tax as “prewritten computer software that is accessed through the internet or a seller-hosted server, regardless of whether the access is permanent or any downloading occurs.” Amounts paid for any transactions subject to the previously enacted multi-channel video or audio service tax are exempt from this sales and use tax.
Sellers who offer digital goods in Utah will need to maintain accurate, up-to-date records and systems for all Utah sales to ensure they charge the correct sales tax. Utah consumers need to be aware of the change and will need to accrue use tax where it is not collected. (Online Sales Tax Amendments, Utah Senate Bill 162, Signed by Governor Cox March 23, 2026, effective July 1, 2026)