SALT LAKE CITY — The Free Speech Coalition (FSC) has issued an advisory that the Utah Excise Tax goes into effect tomorrow.
The advisory follows:
Utah’s controversial excise tax on adult content sales goes into effect on October 1. SB73, an update to the state’s existing age-verification law, requires online adult businesses to pay an excise tax of 2% on sales in the state of Utah.
Some members have expressed concern that payment of the tax could bring them to the attention of the state, potentially increasing the probability of enforcement against them via other sections of the law.
Free Speech Coalition Board Chair Jeffrey Douglas recommends adult businesses with sales in Utah consult with their attorneys to evaluate their liability:
“While a tax on speech is wildly unconstitutional, unless the law is challenged and overturned, adult businesses are liable. Potential penalties for noncompliance are substantial, and willful refusal to pay tax in Utah can result in not only significant fines but potential felony charges. We understand the concerns about exposure, but recommend that anyone considering noncompliance speak with their counsel.”
The statutes regarding the excise tax, including payment information and information on which platforms and content are covered, are available here.
For more information, visit FreeSpeechCoalition.com.