Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H3208

Introduced
2/27/25  

Caption

Establishing a sales tax on digital advertising services

Impact

The revenue generated from this tax is intended to be strategically allocated across various community-focused programs. Notably, 95% of the collected funds will be distributed equally among three main areas: local access television programs, public education campaigns, and research on artificial intelligence in education. Each category is designed to enhance community media programming, promote mental health and safe social media use, and support educational innovations aimed at diverse learning needs. This allocation reflects a commitment to investing in community resources and education while recognizing the evolving landscape of digital communications.

Summary

House Bill 3208 proposes the establishment of a sales tax on digital advertising services within the Commonwealth of Massachusetts. The bill aims to impose a 6.25% tax on the purchase of such services targeting users located in the state, hinging on methods like IP address and geolocation data to determine the user’s location. Vendors with annual sales below $2.5 million will be exempt from this tax, aimed at limiting the financial burden on smaller businesses in the advertising sector. This piece of legislation reflects a response to the significant growth in digital advertising markets and seeks to ensure that they contribute to the state’s revenue system.

Contention

While the intent behind H3208 appears to be aimed at generating essential revenue and supporting community initiatives, there may be contention surrounding the implications of taxing digital advertising. Critics might argue that such a tax could stifle innovation or growth in the digital sector, potentially placing an additional financial burden on businesses reliant on advertising revenues. Furthermore, discussions might arise regarding whether the proposed allocation of funds will effectively address the needs of communities, especially in areas that require more immediate attention or resources. The balance between generating revenue and supporting local business and community growth will be a focal point in the debate surrounding this legislation.

Companion Bills

No companion bills found.

Previously Filed As

MA H3207

To modify the revenue requirements for smoking bars

MA H451

Relative to professional licensure and citizenship

MA H1929

To expand juvenile court justice access

MA H1928

Relative to accomplice and joint venture criminal liability

MA H2677

Relative to the establishment of minority recruitment and selection program

MA H1931

To enhance protections against child exploitation and misuse of emerging technologies

MA H1280

Regulating insurance coverage for testing and deployment of autonomous vehicles and establishing school zone safety protocol

MA H94

To ensure accountability and transparency in artificial intelligence systems

Similar Bills

CA AB840

Outdoor advertising displays: redevelopment agency project areas.

CA SB783

Outdoor advertising displays: redevelopment agency project areas.

WV SB891

Creating State Central Legal Advertising website

TX SB1189

Relating to certain deceptive advertising of legal services.

OR SB417

Relating to outdoor advertising signs.

NJ A3101

Allows certain State agencies to sell Internet advertisements on agencies' websites as pilot program.

MI HB4142

Taxation: other; digital advertising services tax act; create. Creates new act.

AZ HB2179

Marijuana; advertising; restrictions