Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S2017 Compare Versions

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

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2	2	SENATE DOCKET, NO. 1090 FILED ON: 1/15/2025
3	3	SENATE . . . . . . . . . . . . . . No. 2017
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. 1090 FILED ON: 1/15/2025
17	17	SENATE . . . . . . . . . . . . . . No. 2017
18	18	By Ms. Jehlen, a petition (accompanied by bill, Senate, No. 2017) of Patricia D. Jehlen for
19	19	legislation to establish a tax on local revenues from digital advertising. Revenue.
20	20	[SIMILAR MATTER FILED IN PREVIOUS SESSION
21	21	SEE SENATE, NO. 1846 OF 2023-2024.]
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Fourth General Court
25	25	(2025-2026)
26	26	_______________
27	27	An Act establishing a tax on local revenues from digital advertising.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 The General Laws are hereby amended by inserting after chapter 64N the following
31	31	2chapter:
32	32	3 CHAPTER 64O
33	33	4 DIGITAL ADVERTISING LOCAL REVENUES TAX.
34	34	5 Section 1. As used in this chapter, terms shall have the following meanings:
35	35	6 (a) “annual revenues” means income or revenue from all sources, before any expenses or
36	36	7taxes, computed according to generally accepted accounting principles earned in the
37	37	8commonwealth. 2 of 5
38	38	9 (b) “assessable base” means the annual revenues derived from digital advertising services
39	39	10in the commonwealth.
40	40	11 (c) “commissioner” means the commissioner of revenue.
41	41	12 (d) “digital advertising services” includes advertisement services on a digital interface,
42	42	13including advertisements in the form of banner advertising, search engine advertising, interstitial
43	43	14advertising, promoted, boosted, or sponsored content, and other comparable advertising services.
44	44	15 (e) “digital interface” means any type of software, including a website, part of a website,
45	45	16application, or part of an application, that a user is able to access.
46	46	17 (f) “user” means an individual or any other person who accesses a digital interface with a
47	47	18device.
48	48	19 Section 2. The commissioner shall impose a tax on annual gross revenues of a person
49	49	20derived from digital advertising services in the commonwealth. For the purposes of this chapter,
50	50	21digital advertising services are provided in the commonwealth if the digital advertising services
51	51	22appear on the device of a user:
52	52	23 (a) with an Internet Protocol address that indicates the user’s devices is located in the
53	53	24commonwealth; OR
54	54	25 (b) who is known or reasonably presumed to be using the device in the commonwealth.
55	55	26 Section 3. The digital advertising gross revenues tax rate shall be:
56	56	27 (a) 5 per cent of the assessable base for a person with annual gross revenues of
57	57	28$50,000,000 through $100,000,000; 3 of 5
58	58	29 (b) 10 per cent of the assessable base for a person with annual gross revenues of
59	59	30$100,000,001 through $200,000,000; AND
60	60	31 (c) 15 per cent of the assessable base for a person with annual gross revenues exceeding
61	61	32$200,000,001.
62	62	33 Section 4. Each person that, in a calendar year, has annual gross revenues derived from
63	63	34digital advertising services in the commonwealth of at least $100,000 shall complete, under oath,
64	64	35and file with the commissioner a return, on or before April 15 the next year.
65	65	36 Each person that reasonably expects the person’s annual gross revenues derived from
66	66	37digital advertising services in the commonwealth to exceed $100,000 shall complete, under oath,
67	67	38and file with the commissioner a declaration of estimated tax, on or before April 15 of that year.
68	68	39Such a person shall also complete and file with the commissioner a quarterly estimated tax return
69	69	40on or before June 15, September 15, and December 15 of that year.
70	70	41 A person required to file a return under this section shall file with the return an
71	71	42attachment that states any information that the commissioner requires to determine annual gross
72	72	43revenues derived from digital advertising services in the commonwealth.
73	73	44 A person required to file a return under this section shall maintain records of digital
74	74	45advertising services provided in the commonwealth and the basis for the calculation of the digital
75	75	46advertising gross revenues tax owed.
76	76	47 Section 5. (a) Except as required in subsection (b) of this section, each person required to
77	77	48file a return under this chapter shall pay the digital advertising gross revenues tax with the return
78	78	49that covers the period for which the tax is due. 4 of 5
79	79	50 (b) A person required to file estimated digital advertising gross revenues tax returns
80	80	51under this chapter shall pay:
81	81	52 (1) at least 25 per cent of the estimated digital advertising gross revenues tax shown on
82	82	53the declaration or amended declaration for a taxable year with the declaration or amended
83	83	54declaration that covers the year AND with each quarterly return for that year; AND
84	84	55 (2) any unpaid digital advertising gross revenues tax for the year shown on the person’s
85	85	56return that covers that year with the return.
86	86	57 Section 6. If a notice of assessment and demand for a return is made by the commissioner
87	87	58under chapter 62C §31 and a return for the digital advertising gross revenues tax is not filed, the
88	88	59commissioner shall estimate gross revenues from the best information in possession of the
89	89	60commissioner and assess the tax due on the estimated assessable base.
90	90	61 Section 7. An assessment of digital advertising gross revenues tax may be made at any
91	91	62time if:
92	92	63 (a) a false return is filed with the intent to evade the tax;
93	93	64 (b) a willful attempt is made to evade the tax;
94	94	65 (c) a return is not filed as required under this law or subsequent regulation promulgated
95	95	66by the commissioner;
96	96	67 (d) an incomplete return is filed; OR
97	97	68 (e) a report of federal adjustment is not filed within the period required under chapter
98	98	6962C §30 of the general laws. If a report of federal adjustment is filed within the time required 5 of 5
99	99	70under this title, the tax collector shall assess the digital advertising gross revenues tax within 1
100	100	71year after the date on which the tax collector receives the report.
101	101	72 Section 8. This act shall take effect for the tax year beginning on January 1, 2024.