Maryland, Nebraska Look at Advertising Taxes
On January 29 the Maryland Senate Committee on Budget and Taxation held a hearing on SB 2which would place a gross receipts tax on digital advertising. AAF Baltimore President, Matt McDermott and AAF EVP of Government Affairs, Clark Rector both testified against the proposal.
While the bill targets global companies with digital advertising revenues over $100,000,000 McDermott explained how the tax would ultimately also hurt Maryland businesses and consumers. Rector used the opportunity to remind Senators of the importance of advertising to Maryland and how digital advertising gives both small and large Maryland companies the ability to compete far beyond the state’s borders. Both received favorable coverage in the Baltimore Sun.
The next steps for the bill are uncertain, but because it is sponsored by the current and former Presidents of the State Senate it must be taken seriously.
Two ad tax bills have been introduced in the Nebraska legislature. LB 946 would extend the state sales and use tax to all services unless specifically exempted. No exemption for advertising is mentioned in the bill’s language. LB 989 would impose the sales and use tax to digital advertising. Because Nebraska has a very short legislative session this year, and the governor has pledged not to raise taxes, these bills are not expected to be enacted. However, many observers in the state believe that they could lay the groundwork for more serious consideration next year. In March, AAF Omaha and AAF Lincoln will host their annual joint legislative reception. The proposed ad taxes are sure to be a subject of discussion.
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