ANA Opposes Ad Tax Proposal in Utah Legislature

ANA has contacted Governor Gary Herbert and the entire membership of the Utah Legislature to express our strong opposition to any tax on advertising.

The legislature is considering House Bill 441, which would make major changes in the state’s tax structure. It would reduce the sales tax rate from 4.7 percent to 3.1 percent but substantially broaden the base to tax a wide range of business services including advertising.

Our letter to the Governor and the legislators describes the severe negative impact that a tax on advertising would have on local companies, local media and ultimately consumers in Utah. We are urging our members to express their opposition and are working closely with the Utah broadcasters and other industry groups to oppose this proposal.

Taxing advertising is not a new idea, just a bad one. Since 1987 when the Florida services tax was repealed, broad advertising taxes have been considered in more than forty states and rejected in each case. Advertising helps generate significant economic activity and jobs in Utah and every other state.