Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H2787 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	HOUSE DOCKET, NO. 3052 FILED ON: 1/20/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 2787
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Dylan A. Fernandes
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to taxation of digital advertising services.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Dylan A. FernandesBarnstable, Dukes and Nantucket1/20/2023Lindsay N. Sabadosa1st Hampshire3/4/2023 1 of 4
16	16	HOUSE DOCKET, NO. 3052 FILED ON: 1/20/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 2787
18	18	By Representative Fernandes of Falmouth, a petition (accompanied by bill, House, No. 2787) of
19	19	Dylan A. Fernandes and Lindsay N. Sabadosa relative to taxation of digital advertising services.
20	20	Revenue.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE HOUSE, NO. 2894 OF 2021-2022.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Third General Court
26	26	(2023-2024)
27	27	_______________
28	28	An Act relative to taxation of digital advertising services.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 SECTION 1. Chapter 29 of the General Laws is hereby amended by inserting after
32	32	2section 2KKKKK, as inserted by section 1 of chapter 254 of the acts of 2020, the following 2
33	33	3sections:-
34	34	4 Section 2LLLLL. There shall be established and set up on the books of the
35	35	5commonwealth a separate fund to be known as the Local Newspaper Trust Fund, hereinafter
36	36	6referred to as the fund, for the purposes of aiding local businesses and promoting an informed
37	37	7populace. The fund shall provide, without further appropriation, grants to newspapers: (i) with a
38	38	8principal place of business within the commonwealth and (ii) circulation not exceeding 50,000
39	39	9on weekdays. The secretary of housing and economic development shall administer the fund,
40	40	10develop eligibility and application requirements and select grant recipients. 2 of 4
41	41	11 The fund shall consist of: (i) $3 million of revenue from the tax on digital advertising
42	42	12services within the commonwealth as provided in subsection (d) of section 82 of chapter 63,
43	43	13annually; (ii) interest earned on such revenues; and (iii) funds from public and private sources,
44	44	14including, but not limited to, gifts, federal or private grants, donations, rebates and settlements
45	45	15received by the commonwealth that are specifically designated to be credited to the fund.
46	46	16 No expenditure from the fund shall cause the fund to be in deficiency at the close of a
47	47	17fiscal year. Monies deposited in the fund that are unexpended at the end of the fiscal year shall
48	48	18not revert to the General Fund and shall be available for expenditure in the subsequent fiscal
49	49	19year.
50	50	20 Section 2MMMMM. There shall be established and set up on the books of the
51	51	21commonwealth a separate fund to be known as the Pre-K and After School Program Trust Fund.
52	52	22The fund shall provide, without further appropriation, grants to the Massachusetts universal pre-
53	53	23kindergarten program, early education and care programs and school-aged child care programs,
54	54	24as defined in section 1A of chapter 15D. The commissioner of elementary and secondary
55	55	25education and commissioner of early education and care shall administer the fund, develop
56	56	26eligibility and application requirements and select grant recipients.
57	57	27 The fund shall consist of: (i) 50 per cent of the revenue from the tax on digital advertising
58	58	28services within the commonwealth as provided in subsection (d) of section 82 of chapter 63; (ii)
59	59	29interest earned on such revenues; and (iii) funds from public and private sources, including, but
60	60	30not limited to, gifts, federal or private grants, donations, rebates and settlements received by the
61	61	31commonwealth that are specifically designated to be credited to the fund. 3 of 4
62	62	32 No expenditure from the fund shall cause the fund to be in deficiency at the close of a
63	63	33fiscal year. Monies deposited in the fund that are unexpended at the end of the fiscal year shall
64	64	34not revert to the General Fund and shall be available for expenditure in the subsequent fiscal
65	65	35year.
66	66	36 SECTION 2. Chapter 63 of the General Laws, as appearing in the 2018 Official Edition,
67	67	37is hereby amended by adding the following section:-
68	68	38 Section 82. (a) As used in this section the following terms shall, unless the context clearly
69	69	39requires otherwise, have the following meanings:
70	70	40 “Digital advertising services”, advertisement services on a digital interface, including
71	71	41advertisements in the form of banner advertising, search engine advertising, interstitial
72	72	42advertising and other comparable advertising services.
73	73	43 “Digital interface”, any type of software, including a website, part of a website or an
74	74	44application that a user may access.
75	75	45 “IP address”, a unique string of characters assigned to each device connected to a
76	76	46computer network using the Internet Protocol for communication.
77	77	47 “User”, an individual who accesses a digital interface using a device with an IP address.
78	78	48 (b) There shall be assessed and levied in each calendar year an excise on the sale of
79	79	49digital advertising services within the commonwealth on persons with revenue from digital
80	80	50advertising services in excess of $25 million per year within the commonwealth. The excise shall
81	81	51be assessed at a rate equal to 5 per cent of the person’s annual revenue from digital advertising
82	82	52services within the commonwealth. A digital advertising service shall be deemed to have been 4 of 4
83	83	53provided within the commonwealth if it is received on a user’s device having an IP address
84	84	54located within the commonwealth.
85	85	55 (c) Persons with revenue from digital advertising services in excess of $25 million per
86	86	56year within the commonwealth shall remit the excise described in subsection (b) to the
87	87	57commissioner of revenue on a monthly basis.
88	88	58 (d) The commissioner of revenue shall deposit revenue from the excise described in
89	89	59subsection (b) as follows: (i) $3 million in the Local Newspaper Trust Fund established in
90	90	60section 2LLLLL of chapter 29, annually; (ii) 50 per cent of the annual revenue into the Pre-K
91	91	61and After School Trust Fund established in section 2MMMMM of said chapter 29; and (iii) any
92	92	62remaining funds into the General Fund established in section 2 of said chapter 29.