Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1846 Compare Versions

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

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1	1	1 of 1
2	2	SENATE DOCKET, NO. 1439 FILED ON: 1/19/2023
3	3	SENATE . . . . . . . . . . . . . . No. 1846
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Patricia D. Jehlen
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 :Patricia D. JehlenSecond Middlesex 1 of 5
16	16	SENATE DOCKET, NO. 1439 FILED ON: 1/19/2023
17	17	SENATE . . . . . . . . . . . . . . No. 1846
18	18	By Ms. Jehlen, a petition (accompanied by bill, Senate, No. 1846) of Patricia D. Jehlen for
19	19	legislation to establish a tax on local revenues from digital advertising. Revenue.
20	20	The Commonwealth of Massachusetts
21	21	_______________
22	22	In the One Hundred and Ninety-Third General Court
23	23	(2023-2024)
24	24	_______________
25	25	An Act establishing a tax on local revenues from digital advertising.
26	26	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
27	27	of the same, as follows:
28	28	1 SECTION 1. The General Laws are hereby amended by inserting after chapter 64N the
29	29	2following chapter:
30	30	3 CHAPTER 64O
31	31	4 DIGITAL ADVERTISING LOCAL REVENUES TAX.
32	32	5 Section 1. As used in this chapter, terms shall have the following meanings:
33	33	6 (a) “annual revenues” means income or revenue from all sources, before any expenses or
34	34	7taxes, computed according to generally accepted accounting principles earned in the
35	35	8commonwealth.
36	36	9 (b) “assessable base” means the annual revenues derived from digital advertising services
37	37	10in the commonwealth.
38	38	11 (c) “commissioner” means the commissioner of revenue. 2 of 5
39	39	12 (d) “digital advertising services” includes advertisement services on a digital interface,
40	40	13including advertisements in the form of banner advertising, search engine advertising, interstitial
41	41	14advertising, promoted, boosted, or sponsored content, and other comparable advertising services.
42	42	15 (e) “digital interface” means any type of software, including a website, part of a website,
43	43	16application, or part of an application, that a user is able to access.
44	44	17 (f) “user” means an individual or any other person who accesses a digital interface with a
45	45	18device.
46	46	19 Section 2. The commissioner shall impose a tax on annual gross revenues of a person
47	47	20derived from digital advertising services in the commonwealth. For the purposes of this chapter,
48	48	21digital advertising services are provided in the commonwealth if the digital advertising services
49	49	22appear on the device of a user:
50	50	23 (a) with an Internet Protocol address that indicates the user’s devices is located in the
51	51	24commonwealth; OR
52	52	25 (b) who is known or reasonably presumed to be using the device in the commonwealth.
53	53	26 Section 3. The digital advertising gross revenues tax rate shall be:
54	54	27 (a) 5 per cent of the assessable base for a person with annual gross revenues of
55	55	28$50,000,000 through $100,000,000;
56	56	29 (b) 10 per cent of the assessable base for a person with annual gross revenues of
57	57	30$100,000,001 through $200,000,000; AND 3 of 5
58	58	31 (c) 15 per cent of the assessable base for a person with annual gross revenues exceeding
59	59	32$200,000,001.
60	60	33 Section 4. Each person that, in a calendar year, has annual gross revenues derived from
61	61	34digital advertising services in the commonwealth of at least $100,000 shall complete, under oath,
62	62	35and file with the commissioner a return, on or before April 15 the next year.
63	63	36 Each person that reasonably expects the person’s annual gross revenues derived from
64	64	37digital advertising services in the commonwealth to exceed $100,000 shall complete, under oath,
65	65	38and file with the commissioner a declaration of estimated tax, on or before April 15 of that year.
66	66	39Such a person shall also complete and file with the commissioner a quarterly estimated tax return
67	67	40on or before June 15, September 15, and December 15 of that year.
68	68	41 A person required to file a return under this section shall file with the return an
69	69	42attachment that states any information that the commissioner requires to determine annual gross
70	70	43revenues derived from digital advertising services in the commonwealth.
71	71	44 A person required to file a return under this section shall maintain records of digital
72	72	45advertising services provided in the commonwealth and the basis for the calculation of the digital
73	73	46advertising gross revenues tax owed.
74	74	47 Section 5. (a) Except as required in subsection (b) of this section, each person required to
75	75	48file a return under this chapter shall pay the digital advertising gross revenues tax with the return
76	76	49that covers the period for which the tax is due.
77	77	50 (b) A person required to file estimated digital advertising gross revenues tax returns
78	78	51under this chapter shall pay: 4 of 5
79	79	52 (1) at least 25 per cent of the estimated digital advertising gross revenues tax shown on
80	80	53the declaration or amended declaration for a taxable year with the declaration or amended
81	81	54declaration that covers the year AND with each quarterly return for that year; AND
82	82	55 (2) any unpaid digital advertising gross revenues tax for the year shown on the person’s
83	83	56return that covers that year with the return.
84	84	57 Section 6. If a notice of assessment and demand for a return is made by the commissioner
85	85	58under chapter 62C §31 and a return for the digital advertising gross revenues tax is not filed, the
86	86	59commissioner shall estimate gross revenues from the best information in possession of the
87	87	60commissioner and assess the tax due on the estimated assessable base.
88	88	61 Section 7. An assessment of digital advertising gross revenues tax may be made at any
89	89	62time if:
90	90	63 (a) a false return is filed with the intent to evade the tax;
91	91	64 (b) a willful attempt is made to evade the tax;
92	92	65 (c) a return is not filed as required under this law or subsequent regulation promulgated
93	93	66by the commissioner;
94	94	67 (d) an incomplete return is filed; OR
95	95	68 (e) a report of federal adjustment is not filed within the period required under chapter
96	96	6962C §30 of the general laws. If a report of federal adjustment is filed within the time required
97	97	70under this title, the tax collector shall assess the digital advertising gross revenues tax within 1
98	98	71year after the date on which the tax collector receives the report. 5 of 5
99	99	72 Section 8. This act shall take effect for the tax year beginning on January 1, 2024.