Bill > HB4894

This bill, titled the Digital Advertising Tax Act, imposes a new tax on companies that derive significant revenue from digital advertising services within the state. Specifically, any "person" (which includes individuals, partnerships, corporations, and other entities, but generally excludes government entities) whose total annual gross revenue from digital advertising in the state exceeds $150,000,000 will be subject to this tax. The tax rate is set at 10% of the "assessable base," which is defined as the portion of a company's annual gross revenue (income before expenses or taxes) that comes from digital advertising services in the state. Digital advertising services are broadly defined to include advertisements on digital interfaces, such as websites or applications, that utilize personal information about users to target ads, including banner ads, search engine ads, and interstitial ads. The bill outlines requirements for reporting and paying this tax, including estimated tax declarations and quarterly returns, with penalties for non-compliance, including felony charges for fraudulent returns or significant violations. The Department of Revenue will be responsible for collecting this tax, and the collected funds, after administrative costs, will go into the state's General Revenue Fund. The bill takes effect immediately upon becoming law.

Budget and Finance

https://www.ilga.gov/Legislation/BillStatus?DocNum=4894&GAID=18&DocTypeID=HB&SessionID=114&GA=104