The Utah State Tax Commission published several tax bulletins that introduce tax changes effective October 1, 2026, mainly affecting digital content, local sales and use taxes, energy taxes, and transient lodging. These adjustments aim to streamline tax regulations and update rate structures across multiple state jurisdictions.
Key Tax Changes
After Utah enacted 2026 SB 73, the Online Age Verification Amendments, the state introduced a new 2% excise tax on digital content harmful to minors. The new tax applies to businesses that are required to perform age verification under Utah law and that file a Utah Sales and Use Tax return. The tax is calculated at 2% of all amounts received for access to digital media and gaming services.
Tax Bulletin 15-26 introduces several local sales tax changes. Washington City and Hildale in Washington County will each impose a 0.33% emergency services tax beginning October 1, 2026, bringing their combined sales-tax rates to 7.08% in Washington City and 6.78% in Hildale. Delta, Hanksville, and Toquerville will each introduce a 0.3% city or town option sales and use tax for highways. This brings Delta's combined rate to 6.65% and Toquerville's to 7.08%.
Hanksville will introduce a 1.1% resort communities tax on taxable sales. The new tax is combined with a separate resort communities tax, resulting in a 9.05% combined sales tax rate. Weber County will introduce a 0.2% county option sales and use tax to fund highways or public transit.
Tax Bulletin 16-26 concerns municipal energy taxes. West Haven will begin imposing a 6% municipal energy sales and use tax on the delivered value of taxable energy. At the same time, Marriott-Slaterville will increase its municipal energy tax from 3% to 6%. The changes take effect on October 1, 2026, and sellers must collect the new rate on taxable energy sales in the affected municipalities.
As noted in Tax Bulletin 17-26, Nibley City, Francis City, and Alta are introducing a new 1% municipal transient room tax. The tax applies to amounts lodging providers charge for short-term accommodations of fewer than 30 consecutive days. With the new taxes in effect, the total transient room tax will be 6.57% in Nibley City, 5.07% in Francis City, and 7.07% in Alta. Short-term accommodation providers must collect the new municipal tax in addition to other applicable state and local taxes and report it.
Conclusion
These updates reflect Utah's ongoing efforts to align tax obligations with evolving digital services and regional infrastructure needs. Businesses operating in or serving customers in Utah should review their tax determination systems and compliance procedures before October 1, 2026, to ensure accurate collection and reporting in all affected jurisdictions.
