Bill > S2004

This bill establishes a new tax on digital advertising services in Massachusetts, specifically targeting corporations or companies with annual digital advertising revenues exceeding $25 million within the state. The tax rate is set at 5% of annual digital advertising revenue, which will be collected monthly by the commissioner of revenue. The bill creates two new trust funds to allocate the tax revenue: the Local Newspaper Trust Fund will receive 15% of the collected funds to provide grants to local newspapers with circulation under 50,000, while the Pre-K and After School Program Trust Fund will receive 85% of the revenue to support universal pre-kindergarten, early education, and school-aged child care programs. Digital advertising services are defined broadly to include banner ads, search engine advertising, and other similar digital advertising methods, with services considered to be provided within Massachusetts if they are received by a user with a Massachusetts IP address. The funds collected will be managed to ensure they do not create a deficit and any unexpended money will roll over to the subsequent fiscal year, preventing the funds from reverting to the General Fund.

Budget and Finance

https://malegislature.gov/Bills/194/S2004