United States of America: Introduced House Bill 4042 establishing a tax for online advertising
Description
Introduced House Bill 4042 establishing a tax for online advertising
On 29 July 2021, the Act establishing a tax for online advertising (HB 4042) is introduced in the Massachusetts legislature. The Act would introduce a tax of 6.25% on the revenue obtained by companies through digital advertising services provided to users having an internet protocol address in the state of Massachusetts. The Act also specifies that the first USD 500’000 in revenue would be exempt from taxation.
Original sourceScope
Policy Area
Taxation
Policy Instrument
Direct taxes including Digital Service Taxes
Regulated Economic Activity
online advertising provider
Implementation Level
subnational
Government Branch
legislature
Government Body
parliament
Key regulatory dimensions
Regulated subjects
The businesses, government agencies or individuals affected by this policy or regulatory change.
producer / supplier
1
Type
Private organisation
Economic activity
online advertising provider
Category
All
Policy change by business practice
The detailed activities within the scope of this policy or regulatory change.
advertisement (any targeting): hosting: display
Regulatory tool
Subordination under digital service tax
Sanctions
TBR - Existing statutory sanction
Regulated subjects
1