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Utah

Utah clarifies sales tax applies to digital products regardless of delivery method

May 26, 2026

Utah Governor Cox signed SB 162, which takes effect July 1, 2026. The bill confirms that digital audio-visual works, digital audio works, digital books, and gaming services are all subject to sales tax whether streamed or downloaded. This resolves a compliance gap created by older case law that treated streamed and downloaded products differently, a distinction the Utah State Tax Commission identified as causing inconsistent outcomes for businesses. 

The bottom line: The underlying taxability of digital products does not change under SB 162. The bill simply removes delivery method as a factor. If your business sells digital content or gaming services in Utah, your tax obligations are the same whether customers stream or download.

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