Bill > SB192

This bill establishes a new digital advertising tax in Montana targeting large technology companies that provide digital advertising services. The tax applies to companies with worldwide annual gross revenue of $25 million or more that derive revenue from digital advertising services within the state. The tax rate is set at 10% of the company's assessable base, which is calculated using a specific apportionment formula that compares the company's digital advertising revenue in Montana to its total digital advertising revenue in the United States. Companies must file annual tax returns by April 15th and may be required to file quarterly estimated tax returns if their expected annual revenue from digital advertising in the state exceeds $1 million. The bill defines digital advertising services broadly, including banner ads, search engine advertising, and other comparable digital advertising formats. The Department of Revenue is authorized to audit these companies, and they must maintain records for five years. Companies that fail to file returns or pay taxes will be subject to penalties and interest. All revenue collected from this tax will be deposited into the state's general fund, with the tax becoming effective on January 1, 2026.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC1649