Massachusetts H 4179: An Act establishing a tax for online advertising

Bill Text

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HOUSE DOCKET, NO. 3812 FILED ON: 2/19/2021
HOUSE . . . . . . . . . . . . . . . No. 4179

The Commonwealth of Massachusetts
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PRESENTED BY:
David M. Rogers
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act establishing a tax for online advertising.
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PETITION OF:

NAME: DISTRICT/ADDRESS: DATE ADDED:
David M. Rogers 24th Middlesex 2/19/2021
Elizabeth A. Malia 11th Suffolk 3/15/2021

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HOUSE DOCKET, NO. 3812 FILED ON: 2/19/2021
HOUSE . . . . . . . . . . . . . . . No. 4179
By Mr. Rogers of Cambridge, a petition (accompanied by bill, House, No. 4179) of David M.
Rogers and Elizabeth A. Malia relative to establishing a tax for online advertising. Revenue.

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Second General Court
(2021-2022)
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An Act establishing a tax for online advertising.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:

1 Chapter 63 of the General Laws is hereby amended by adding the following section:-
2 Section 82. (a) As used in this section the following terms shall, unless the context clearly
3 requires otherwise, have the following meanings:
4 “Digital advertising services”, advertisement services on a digital interface, including
5 advertisements in the form of banner advertising, search engine advertising, interstitial
6 advertising and other comparable advertising services.
7 “Digital interface”, any type of software, including a website, part of a website or an
8 application that a user may access.
9 “IP address”, a unique string of characters assigned to each device connected to a
10 computer network using the Internet Protocol for communication.
11 “User”, an individual who accesses a digital interface using a device with an IP address.

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12 (b) There shall be assessed and levied in each calendar year an excise on the sale of
13 digital advertising services provided within the commonwealth. A digital advertising service
14 shall be deemed to have been provided within the commonwealth if it is received on a user’s
15 device having an IP address located within the commonwealth.
16 (c) Persons with revenue from digital advertising services provided within the
17 commonwealth shall remit the excise described in subsection (b) to the commissioner of revenue
18 on a monthly basis.
19 (d) The excise shall be assessed at a rate equal to 6.25 per cent of the person’s annual
20 gross revenue from digital advertising services provided within the commonwealth. The first $1
21 million in revenue from digital advertising services provided within the commonwealth annually
22 shall be exempt from the excise imposed by this section.