On February 28, 2020, Maryland’s proposed Digital Advertising Tax was the subject of a hearing by the Maryland House of Delegates’ Ways and Means Committee. House Bill 695 would impose a tax on Maryland gross revenues from digital advertising services at a rate of up to a 10%. An archived video of the hearing is
Digital Advertising
Webcast: 2020 – The year of digital taxation
By Charles Capouet on
Posted in Digital Economy, Events and Webcasts
In 2020, state and local tax practitioners have witnessed the emergence of a new trend: the proposed taxation of advertising services and data usage. In this Bottom Line webcast, Charles Capouet and Samantha Trencs discuss:
- the proposed Maryland tax on gross revenues from digital advertising services
- potential expansions of the Nebraska and South Dakota
…
Maryland House of Delegates Introduces Sales Tax Expansion to Nearly All Services
Posted in In the News
On February 20, 2020, the Maryland House of Delegates introduced HB 1628, which would reduce the sales tax rate from 6% to 5% and expand the base to tax almost all services. If passed, the bill would take effect January 1, 2021. This bill is sponsored by key members of House leadership, including the…
South Dakota House of Representatives’ Taxation Committee Strikes Advertising Tax Provision from HB 1284
Posted in Digital Economy
During a hearing held on February 20, 2020, the South Dakota House of Representatives’ Taxation Committee approved an amendment to House Bill 1284, striking the proposed elimination of the sales tax exemption for advertising services. The bill’s sponsor, Representative Finck (Republican), introduced the amendment himself. He clarified that he did not intend to tax…
South Dakota Advertising Tax Hearing Scheduled – February 20, 2020 at 7:45 a.m. Central
Posted in Digital Economy
On February 6, 2020, South Dakota Representative Finck introduced House Bill 1284, which would repeal the sales tax exemption for sales of advertising services. The South Dakota sales tax broadly applies to sales of services, unless specifically exempt. The bill has since been referred to the House of Representatives’ Taxation Committee. On Thursday, February…
Nebraska Legislature Considers Sales Tax on Digital Advertising
On February 13, 2020, the Nebraska Legislature’s Revenue Committee heard testimony on Legislative Bill 989, which would expand Nebraska’s sales tax base to include sales of digital advertisements.
After an introduction by the bill’s sponsor, Senator Justin Wayne, the Revenue Committee heard testimony from four witnesses, each opposing the bill. The Committee also received…
The 2020 State Legislative Trend to Watch – Advertising and Data Taxes
Posted in Digital Economy, In the News
Over 40 state legislatures have convened their 2020 legislative sessions. Last year, states moved quickly to impose collection and remittance obligations on remote sellers and marketplace facilitators in light of Wayfair. This year, states are charting a new course – proposing legislation to expand sales taxes to include advertising services or proposing entirely new taxes…
Nebraska Bill Would Expand Sales Tax Base to Digital Advertising Services
By Charles Capouet & Charlie Kearns on
Posted in In the News
On January 14, 2020, legislation (L.B. 989) was introduced in the Nebraska Legislature that would expand the sales tax base to include sales of “digital advertisements.” “Digital advertisement” means “an advertising message delivered over the Internet that markets or promotes a particular good, service, or political candidate or message.” Nebraska is now the…