New York A 7805: Establishes a tax on digital ads

Bill Text

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A07805 Summary:

BILL NOA07805 

&nbsp

SAME ASSAME AS S04778

&nbsp

SPONSORWalker

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Add Art 15 §§330 - 334, §1816, Tax L

&nbsp

Establishes a tax on annual gross revenue derived from digital ads.

Go to top A07805 Actions:

BILL NOA07805 

&nbsp

04/11/2025referred to ways and means

01/07/2026referred to ways and means

Go to topA07805 Committee&nbspVotes:

Go to topA07805 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA07805 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 7805

 2025-2026 Regular Sessions

 IN ASSEMBLY

 April 11, 2025
 ___________

 Introduced by M. of A. WALKER -- read once and referred to the Committee
 on Ways and Means

 AN ACT to amend the tax law, in relation to establishing a tax on
 digital ads

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The tax law is amended by adding a new article 15 to read
 2 as follows:
 3 ARTICLE 15
 4 TAX ON DIGITAL ADS
 5 Section 330. Findings and intent.
 6 331. Definitions.
 7 332. Imposition of tax.
 8 333. Returns.
 9 334. Tax payment.
 10 § 330. Findings and intent. The legislature finds and declares the
 11 following:
 12 1. Many goods and services that have been traditionally subject to
 13 state and local sales use taxes have avoided taxation in the digital
 14 era. However, many digital transactions are harder to bring into the
 15 sales tax base because instead of paying a monetary fee, customers some-
 16 times barter their personal information for access to digital platforms.
 17 This personal information is in turn sold for use in targeted advertise-
 18 ments on digital platforms. To tax this consumption, leading tax econo-
 19 mists have suggested using the receipts earned from digital advertise-
 20 ments as a proxy for the value of the barter.
 21 2. As has been noted by many, including the Organization for Economic
 22 Co-operation and Development, the value of the consumption provided by
 23 digital platforms is typically greater as the size of its network is
 24 greater. The legislature finds that the consumption value provided by

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02007-01-5

 A. 7805 2

 1 networks of a small size is negligible, especially when compared to the
 2 compliance burden that would be imposed on smaller digital platforms.
 3 § 331. Definitions. As used in this article, the following terms shall
 4 have the following meanings:
 5 1. The term "annual gross revenues" means income or revenue from all
 6 sources in New York state, before any expenses or taxes, computed
 7 according to generally accepted accounting principles.
 8 2. The term "assessable base" means the annual gross revenues derived
 9 from digital advertising services in the state.
 10 3. The term "digital advertising services" includes advertisement
 11 services on a digital interface, including advertisements in the form of
 12 banner advertising, search engine advertising, interstitial advertising,
 13 and other comparable advertising services, that use personal information
 14 about the people the ads are being served to.
 15 4. The term "digital interface" means any type of software, including
 16 a website, part of a website, or application, that a user is able to
 17 access.
 18 5. (a) The term "person" means any natural individual, receiver, trus-
 19 tee, guardian, personal representative, fiduciary, or representative of
 20 any kind and any partnership, firm, association, corporation, or other
 21 entity.
 22 (b) The term "person", unless expressly provided otherwise, does not
 23 include a governmental entity or a unit or instrumentality of a govern-
 24 mental entity.
 25 6. The term "user" means an individual or any other person who
 26 accesses a digital interface with a device.
 27 § 332. Imposition of tax. 1. There is hereby imposed and shall be paid
 28 a tax on the annual gross revenues any person derives from digital
 29 advertising services in the state.
 30 2. The tax imposed shall be apportioned to the state by the apportion-
 31 ment factor determined pursuant to this section. The apportionment
 32 fa