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HOUSE DOCKET, NO. 1007 FILED ON: 1/14/2025
HOUSE . . . . . . . . . . . . . . . No. 3263
The Commonwealth of Massachusetts
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PRESENTED BY:
Erika Uyterhoeven
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act establishing a tax on local revenues from digital advertising.
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PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Erika Uyterhoeven27th Middlesex1/14/2025 1 of 5
HOUSE DOCKET, NO. 1007 FILED ON: 1/14/2025
HOUSE . . . . . . . . . . . . . . . No. 3263
By Representative Uyterhoeven of Somerville, a petition (accompanied by bill, House, No.
3263) of Erika Uyterhoeven for legislation to establish a tax on local revenues from digital
advertising. Revenue.
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Fourth General Court
(2025-2026)
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An Act establishing a tax on local revenues from digital advertising.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. The General Laws are hereby amended by inserting after chapter 64N the
2following chapter:
3 CHAPTER 64O
4 DIGITAL ADVERTISING LOCAL REVENUES TAX.
5 Section 1. As used in this chapter, terms shall have the following meanings:
6 (a) “annual revenues” means income or revenue from all sources, before any expenses or
7taxes, computed according to generally accepted accounting principles earned in the
8commonwealth.
9 (b) “assessable base” means the annual revenues derived from digital advertising services
10in the commonwealth. 2 of 5
11 (c) “commissioner” means the commissioner of revenue.
12 (d) “digital advertising services” includes advertisement services on a digital interface,
13including advertisements in the form of banner advertising, search engine advertising, interstitial
14advertising, promoted, boosted, or sponsored content, and other comparable advertising services.
15 (e) “digital interface” means any type of software, including a website, part of a website,
16application, or part of an application, that a user is able to access.
17 (f) “user” means an individual or any other person who accesses a digital interface with a
18device.
19 Section 2. The commissioner shall impose a tax on annual gross revenues of a person
20derived from digital advertising services in the commonwealth. For the purposes of this chapter,
21digital advertising services are provided in the commonwealth if the digital advertising services
22appear on the device of a user:
23 (a) with an Internet Protocol address that indicates the user’s devices is located in the
24commonwealth; OR
25 (b) who is known or reasonably presumed to be using the device in the commonwealth.
26 Section 3. The digital advertising gross revenues tax rate shall be:
27 (a) 5 per cent of the assessable base for a person with annual gross revenues of
28$50,000,000 through $100,000,000;
29 (b) 10 per cent of the assessable base for a person with annual gross revenues of
30$100,000,001 through $200,000,000; AND 3 of 5
31 (c) 15 per cent of the assessable base for a person with annual gross revenues exceeding
32$200,000,001.
33 Section 4. Each person that, in a calendar year, has annual gross revenues derived from
34digital advertising services in the commonwealth of at least $100,000 shall complete, under oath,
35and file with the commissioner a return, on or before April 15 the next year.
36 Each person that reasonably expects the person’s annual gross revenues derived from
37digital advertising services in the commonwealth to exceed $100,000 shall complete, under oath,
38and file with the commissioner a declaration of estimated tax, on or before April 15 of that year.
39Such a person shall also complete and file with the commissioner a quarterly estimated tax return
40on or before June 15, September 15, and December 15 of that year.
41 A person required to file a return under this section shall file with the return an
42attachment that states any information that the commissioner requires to determine annual gross
43revenues derived from digital advertising services in the commonwealth.
44 A person required to file a return under this section shall maintain records of digital
45advertising services provided in the commonwealth and the basis for the calculation of the digital
46advertising gross revenues tax owed.
47 Section 5. (a) Except as required in subsection (b) of this section, each person required to
48file a return under this chapter shall pay the digital advertising gross revenues tax with the return
49that covers the period for which the tax is due.
50 (b) A person required to file estimated digital advertising gross revenues tax returns
51under this chapter shall pay: 4 of 5
52 (1) at least 25 per cent of the estimated digital advertising gross revenues tax shown on
53the declaration or amended declaration for a taxable year with the declaration or amended
54declaration that covers the year AND with each quarterly return for that year; AND
55 (2) any unpaid digital advertising gross revenues tax for the year shown on the person’s
56return that covers that year with the return.
57 Section 6. If a notice of assessment and demand for a return is made by the commissioner
58under chapter 62C §31 and a return for the digital advertising gross revenues tax is not filed, the
59commissioner shall estimate gross revenues from the best information in possession of the
60commissioner and assess the tax due on the estimated assessable base.
61 Section 7. An assessment of digital advertising gross revenues tax may be made at any
62time if:
63 (a) a false return is filed with the intent to evade the tax;
64 (b) a willful attempt is made to evade the tax;
65 (c) a return is not filed as required under this law or subsequent regulation promulgated
66by the commissioner;
67 (d) an incomplete return is filed; OR
68 (e) a report of federal adjustment is not filed within the period required under chapter
6962C §30 of the general laws. If a report of federal adjustment is filed within the time required
70under this title, the tax collector shall assess the digital advertising gross revenues tax within 1
71year after the date on which the tax collector receives the report. 5 of 5
72 Section 8. This act shall take effect for the tax year beginning on January 1, 2026.