Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H2966 Compare Versions

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

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 3144 FILED ON: 1/20/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 2966
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Erika Uyterhoeven
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 establishing a tax on local revenues from digital advertising.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Erika Uyterhoeven27th Middlesex1/17/2023 1 of 5
16	16	HOUSE DOCKET, NO. 3144 FILED ON: 1/20/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 2966
18	18	By Representative Uyterhoeven of Somerville, a petition (accompanied by bill, House, No.
19	19	2966) of Erika Uyterhoeven for legislation to establish a tax on local revenues from digital
20	20	advertising. Revenue.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE HOUSE, NO. 3081 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 establishing a tax on local revenues from digital advertising.
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. The General Laws are hereby amended by inserting after chapter 64N the
32	32	2following chapter:
33	33	3 CHAPTER 64O
34	34	4 DIGITAL ADVERTISING LOCAL REVENUES TAX.
35	35	5 Section 1. As used in this chapter, terms shall have the following meanings:
36	36	6 (a) “annual revenues” means income or revenue from all sources, before any expenses or
37	37	7taxes, computed according to generally accepted accounting principles earned in the
38	38	8commonwealth. 2 of 5
39	39	9 (b) “assessable base” means the annual revenues derived from digital advertising services
40	40	10in the commonwealth.
41	41	11 (c) “commissioner” means the commissioner of revenue.
42	42	12 (d) “digital advertising services” includes advertisement services on a digital interface,
43	43	13including advertisements in the form of banner advertising, search engine advertising, interstitial
44	44	14advertising, promoted, boosted, or sponsored content, and other comparable advertising services.
45	45	15 (e) “digital interface” means any type of software, including a website, part of a website,
46	46	16application, or part of an application, that a user is able to access.
47	47	17 (f) “user” means an individual or any other person who accesses a digital interface with a
48	48	18device.
49	49	19 Section 2. The commissioner shall impose a tax on annual gross revenues of a person
50	50	20derived from digital advertising services in the commonwealth. For the purposes of this chapter,
51	51	21digital advertising services are provided in the commonwealth if the digital advertising services
52	52	22appear on the device of a user:
53	53	23 (a) with an Internet Protocol address that indicates the user’s devices is located in the
54	54	24commonwealth; OR
55	55	25 (b) who is known or reasonably presumed to be using the device in the commonwealth.
56	56	26 Section 3. The digital advertising gross revenues tax rate shall be:
57	57	27 (a) 5 per cent of the assessable base for a person with annual gross revenues of
58	58	28$50,000,000 through $100,000,000; 3 of 5
59	59	29 (b) 10 per cent of the assessable base for a person with annual gross revenues of
60	60	30$100,000,001 through $200,000,000; AND
61	61	31 (c) 15 per cent of the assessable base for a person with annual gross revenues exceeding
62	62	32$200,000,001.
63	63	33 Section 4. Each person that, in a calendar year, has annual gross revenues derived from
64	64	34digital advertising services in the commonwealth of at least $100,000 shall complete, under oath,
65	65	35and file with the commissioner a return, on or before April 15 the next year.
66	66	36 Each person that reasonably expects the person’s annual gross revenues derived from
67	67	37digital advertising services in the commonwealth to exceed $100,000 shall complete, under oath,
68	68	38and file with the commissioner a declaration of estimated tax, on or before April 15 of that year.
69	69	39Such a person shall also complete and file with the commissioner a quarterly estimated tax return
70	70	40on or before June 15, September 15, and December 15 of that year.
71	71	41 A person required to file a return under this section shall file with the return an
72	72	42attachment that states any information that the commissioner requires to determine annual gross
73	73	43revenues derived from digital advertising services in the commonwealth.
74	74	44 A person required to file a return under this section shall maintain records of digital
75	75	45advertising services provided in the commonwealth and the basis for the calculation of the digital
76	76	46advertising gross revenues tax owed.
77	77	47 Section 5. (a) Except as required in subsection (b) of this section, each person required to
78	78	48file a return under this chapter shall pay the digital advertising gross revenues tax with the return
79	79	49that covers the period for which the tax is due. 4 of 5
80	80	50 (b) A person required to file estimated digital advertising gross revenues tax returns
81	81	51under this chapter shall pay:
82	82	52 (1) at least 25 per cent of the estimated digital advertising gross revenues tax shown on
83	83	53the declaration or amended declaration for a taxable year with the declaration or amended
84	84	54declaration that covers the year AND with each quarterly return for that year; AND
85	85	55 (2) any unpaid digital advertising gross revenues tax for the year shown on the person’s
86	86	56return that covers that year with the return.
87	87	57 Section 6. If a notice of assessment and demand for a return is made by the commissioner
88	88	58under chapter 62C §31 and a return for the digital advertising gross revenues tax is not filed, the
89	89	59commissioner shall estimate gross revenues from the best information in possession of the
90	90	60commissioner and assess the tax due on the estimated assessable base.
91	91	61 Section 7. An assessment of digital advertising gross revenues tax may be made at any
92	92	62time if:
93	93	63 (a) a false return is filed with the intent to evade the tax;
94	94	64 (b) a willful attempt is made to evade the tax;
95	95	65 (c) a return is not filed as required under this law or subsequent regulation promulgated
96	96	66by the commissioner;
97	97	67 (d) an incomplete return is filed; OR
98	98	68 (e) a report of federal adjustment is not filed within the period required under chapter
99	99	6962C §30 of the general laws. If a report of federal adjustment is filed within the time required 5 of 5
100	100	70under this title, the tax collector shall assess the digital advertising gross revenues tax within 1
101	101	71year after the date on which the tax collector receives the report.
102	102	72 Section 8. This act shall take effect for the tax year beginning on January 1, 2024.