In rare move, Utah lawmakers decided to tax large tech companies. A new lawsuit argues it’s illegal.

The new tax is meant to target ads “intentionally designed to addict our minors,” a lawmaker said. In a new lawsuit, the Utah Taxpayers Association says it violates federal law.

(Trent Nelson | The Salt Lake Tribune) Sen. Mike McKell, R-Spanish Fork, at the Utah Capitol in Salt Lake City on Friday, Feb. 21, 2025. McKell sponsored SB287 (the “Targeted Advertising Tax” bill) during the latest legislative session.