Advertising and Data Taxes – Numerous States to Watch in 2020

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.