Connecticut is the latest state to take aim at the big pockets of Big Tech with a proposed digital ad tax, and it is not sitting well with advertisers. The Association of National Advertisers has come out strongly against SB 821, a bill that would levy a 10% tax on digital ad services in the state on any business with annual gross revenues (worldwide) of more than $10 billion.
Facebook, Google and other online companies could face new taxes in Maryland, if a bill passed this week is signed by the governor. The measure, SB2, would impose new taxes on companies that glean than $100 million in digital ad revenue. Rates would vary from 2.5% to 10% of revenue attributable to Maryland, with the percentage tied to global revenue. The Association of National Advertisers is asking Gov. Larry Hogan to veto it.
Broadcasters Wary Of State, Fed Ad Tax Push
Lawmakers and officials struggling with poor finances in North Carolina, Illinois, Pennsylvania and California are eyeing a tax on advertising as a way to help solve state budget crunches. At the federal level, lawmakers are looking at limiting the advertising tax deduction as part of broader federal tax reform.
