Home Accounting States introduce legislation to tax digital advertising

States introduce legislation to tax digital advertising

by The 100 Companies
States introduce legislation to tax digital advertising

Many states have long been trying to tax the digital economy. The most recent trend involves imposing taxes on digital advertising services, with Maryland, Nebraska and New York having introduced such legislation in 2020, to objection by the advertising industry.

The proposed taxes would generally be a gross receipts tax or a sales tax applied to a broad definition of digital advertising. Legislators would have to contend with the Permanent Internet Tax Freedom Act (PITFA), which does not allow taxing on goods or services unless there’s a physical counterpart that is taxed. Consult your tax advisor on your unique situation.

– Laura Mirro, Anchin, Block & Anchin LLP

You may also like

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Do NOT follow this link or you will be banned from the site!