Bill > H3208

This bill establishes a 6.25% sales tax on digital advertising services targeting users located in Massachusetts, with several key provisions and nuanced implementation details. The tax would apply to the sale of advertising space through digital interfaces like websites and mobile apps, where the target audience is within the state, and would be collected by the vendor at the time of sale. Vendors with gross annual digital advertising sales below $2,500,000 targeting Massachusetts users would be exempt from the tax. The revenue generated would be allocated with up to 5% going to administrative costs, distributed among the Department of Revenue and three state agencies: the Department of Telecommunications and Cable, the Department of Public Health, and the Department of Elementary and Secondary Education. The remaining 95% of revenue would be equally divided into three grant categories: supporting local access television programs, funding public education campaigns about digital and mental health resources, and researching artificial intelligence tools for educational purposes. The bill includes provisions for technical assistance to grant applicants, ensures funds must be used within two years, and requires agencies to report on administrative fund usage. The tax and associated grant programs would become effective on January 1, 2027, with grant disbursements beginning no earlier than January 1, 2028.

Budget and Finance

https://malegislature.gov/Bills/194/H3208