State legislatures have convened their 2020 legislative sessions and this year, not only Maryland but, several states are setting their sites on advertising and data as a new revenue source. Proposed legislation to expand sales taxes to include advertising services or proposing entirely new taxes on advertising and data are being legislated in:
- Maryland proposes an entirely new gross receipts tax on gross revenues earned from online advertisements (SB 2 & HB 695)
- Nebraska proposes to expand the sales and use tax base to include online advertisements (LB 989)
- New York proposes an entirely new tax on gross income corporations derive from the data individuals share with corporations (AB 9112 & SB 6102)
- South Dakota proposes to subject advertising services to sales and use taxes (HB 1284)
Of course if the new taxes pass in some states we may see a number of other state legislators follow. Let’s hope our regional advertising leader’s opposition not only have an impact regionally but nationally.