Bill
H 3224
Massachusetts would impose a 6.25% excise on annual gross revenue from digital advertising services delivered to Massachusetts users, with the first $1M exempt.
Note on source material and scope
- The documents provided for H 3224 contain two distinct bill texts: (A) a Massachusetts bill titled “An Act establishing a tax for online advertising” (filed by Rep. David M. Rogers), and (B) the full text (partial/truncated) of a South Carolina bill adding section 41‑1‑35 limiting employers’ questions about criminal convictions on job applications. The legislative action history and sponsor information align with the Massachusetts filing. Below are clear, separate summaries of both items and a note advising verification of the official bill text.
Sponsor: Rep. David M. Rogers (24th Middlesex)
Purpose and intent
- To impose an excise tax on the sale of digital advertising services provided to users located within Massachusetts.
Key provisions
- Adds a new Section 82 to Chapter 63 (Mass. General Laws).
- Definitions: “digital advertising services” (banner, search, interstitial, similar services), “digital interface” (website or app), “IP address,” and “user.”
- Tax incidence: an excise assessed annually on sales of digital advertising services “provided within the Commonwealth.”
- A service is deemed provided within Massachusetts if it is received on a user device with an IP address located in Massachusetts.
- Rate and base:
- 6.25% of the person’s annual gross revenue from such services provided within the Commonwealth.
- The first $1,000,000 of annual revenue from these services is exempt.
- Compliance:
- Persons with revenue from in‑state digital advertising must remit the excise to the Commissioner of Revenue on a monthly basis.
Who is affected
- Providers/sellers of digital advertising services that generate revenue from delivery to users located (by IP) in Massachusetts. Small providers with ≤ $1M annual in‑state revenue (per person) are partially exempt up to the $1M threshold.
Potential impacts
- Revenue generation for state government; increased tax compliance and reporting obligations for online advertisers and platforms delivering ads to Massachusetts users.
- Could affect pricing, contracts, or ad-serving practices for platforms and intermediaries that sell or broker digital advertising.
Legislative status / timeline (from provided record)
- Prefiled: 12/05/2024
- Introduced/read first time: 01/14/2025
- Referred to Committee on Judiciary: 01/14/2025 (note: also referred to Revenue committee on 02/27/2025)
- Referred to Committee on Revenue: 02/27/2025
- Senate concurred: 02/27/2025
- Hearing scheduled (per record): 10/28/2025, 1:00 PM–5:00 PM (B‑2)
(Excerpted / truncated text included in materials — appears to be a separate state bill)
Purpose and intent
- To restrict employers and licensing authorities from inquiring about or disqualifying applicants based on criminal convictions early in the hiring or licensing process, to improve re‑entry and employment opportunities for people with criminal records.
Key provisions (high‑level)
- Policy statement encouraging rehabilitation and employment as essential to reintegration.
- Definitions: “conviction of crime” limited to felonies, gross misdemeanors, and misdemeanors for which jail may be imposed; “hiring or licensing authority,” “license,” “occupation,” and “public employment.”
- Ban on inquiry: Public and private employers may not ask about or consider criminal history until the applicant is selected for an interview or, absent an interview, before a conditional offer of employment.
- Exceptions: Department of Corrections and employers with statutory duties to conduct background checks; employers may still notify applicants in advance if certain convictions disqualify for particular jobs.
- Disqualification standard: No one may be disqualified solely/partly because of a prior conviction unless the conviction directly relates to the job or licensed occupation.
- Required factors for determining direct relation: nature/seriousness of the crime, relationship to regulatory purpose of the position, and relationship to ability/fitness to perform the job.
- Rehabilitation and review: Applicants with directly related convictions may avoid disqualification by showing competent evidence of rehabilitation (examples include DD‑214 with honorable discharge, release orders, evidence of at least one year post‑release without reconviction, completion of parole/probation).
- Authorities must consider mitigating circumstances, age at offense, time elapsed, and other rehabilitation evidence.
- Records excluded from consideration: arrests not resulting in conviction, convictions annulled/expunged, and certain misdemeanors not subject to jail.
- Procedural protections: If denied based on prior conviction, an applicant must receive written notice of reasons, appeal/complaint procedures, earliest re‑application date, and how to present rehabilitation evidence. (Text truncated; more procedural detail likely follows.)
Who is affected
- Public and private employers and licensing authorities in South Carolina and job/license applicants with criminal histories.
Potential impacts
- Shifts timing of criminal‑history inquiries later in the hiring process (“ban the box”‑style approach), potentially improving employment access for formerly incarcerated or convicted individuals.
- Requires employers to adopt new procedures, and provides applicants with notice and appeal rights when convicted history leads to disqualification.
Recommendation
- Because the provided packet appears to conflate or include multiple bills from different jurisdictions and the title/header (Criminal convictions on employment applications) does not match the Massachusetts ad‑tax text, verify the official bill text and docket entry with the relevant legislative clerk or the state legislature’s bill tracking system before relying on any legislative analysis or compliance actions.
Compiled from official sources — confirm details with the bill’s official record.
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