Bill > H3126

This bill establishes a new tax on digital advertising services within the Commonwealth of Massachusetts, targeting companies that provide online advertising. The bill defines key terms such as "digital advertising services" (which includes banner, search engine, and interstitial advertisements), "digital interface" (software like websites or apps), and establishes how the tax will be calculated and applied. Specifically, the legislation imposes a 6.25% excise tax on annual revenue from digital advertising services where the user's device has an IP address located in Massachusetts. Companies would be required to remit this tax to the commissioner of revenue on a monthly basis, with an initial exemption for the first $500,000 of annual revenue from such services. The bill aims to generate revenue by taxing online advertising activities, focusing on digital platforms that serve advertisements to Massachusetts-based users. By defining digital advertising services broadly and using IP address location as the determination of taxable service, the bill creates a new mechanism for collecting taxes from digital advertising providers operating in the state.

Budget and Finance

https://malegislature.gov/Bills/194/H3126