Bill > S2017

This bill establishes a new state tax on digital advertising revenues for companies operating in Massachusetts, targeting businesses with significant annual gross revenues derived from digital advertising services. The tax would apply to companies earning at least $100,000 annually from digital advertising, with a graduated tax rate based on total revenue: 5% for companies earning between $50-100 million, 10% for companies earning between $100-200 million, and 15% for companies earning over $200 million. Digital advertising services are broadly defined to include banner ads, search engine advertising, sponsored content, and other similar digital advertising methods. Companies meeting the revenue threshold would be required to file annual and quarterly tax returns, with the first tax year beginning January 1, 2024. The bill provides detailed provisions for tax calculation, reporting requirements, and enforcement, including the commissioner of revenue's ability to estimate taxes if proper returns are not filed. The tax would apply to digital advertising that appears on devices with Massachusetts IP addresses or is used by individuals presumed to be in the state, creating a mechanism to capture digital advertising revenues from online platforms targeting Massachusetts users.

Budget and Finance

https://malegislature.gov/Bills/194/S2017