Bill > H3089

This bill establishes a new tax on digital advertising services for corporations with annual revenues exceeding $25 million from such services within Massachusetts. The tax would be set at 5% of the company's digital advertising revenue in the state, with revenue collected from companies having IP addresses located in Massachusetts. The tax revenue would be divided into two dedicated trust funds: 15% would go to the Local Newspaper Trust Fund, which provides grants to local newspapers with circulation under 50,000, and 85% would be deposited in the Pre-K and After School Program Trust Fund, which supports 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 comparable digital advertising methods. The bill specifies that the funds must be used specifically for their designated purposes, with any unexpended money rolling over to the next fiscal year rather than reverting to the general fund. The commissioner of revenue would be responsible for collecting and distributing the tax revenue, and the respective commissioners of housing and economic development, elementary and secondary education, and early education and care would administer the grant programs.

Budget and Finance

https://malegislature.gov/Bills/194/H3089