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A 7805

Establishes a tax on digital ads

2025 Regular Session Introduced by Latrice Walker

Bill A 7805 imposes a tax on digital ad revenues from businesses, generating funds for public services like education and infrastructure while impacting advertising costs.

REFERRED TO WAYS AND MEANS
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Bill Summary · A 7805

Summary of Bill A 7805: Establishes a Tax on Digital Ads

Bill Overview

  • Bill Number: A 7805
  • Title: Establishes a tax on digital ads
  • Status: Referred to Ways and Means
  • Introduced: April 11, 2025
  • Classification: Bill

Purpose and Intent

The primary purpose of Bill A 7805 is to impose a tax on digital advertising revenues generated by companies operating within the jurisdiction. This legislation aims to create a new revenue stream for the state, which can be utilized for various public services and initiatives, particularly in areas such as education, infrastructure, and digital equity.

Key Provisions

  • Tax Rate: The bill proposes a specific tax rate on the gross revenues derived from digital advertising. The exact percentage will be determined during the legislative process.
  • Scope of Taxation: The tax will apply to all businesses that generate income from digital advertising, including social media platforms, search engines, and other online advertising services.
  • Exemptions: Certain small businesses may be exempt from this tax, although the criteria for exemption will need to be defined in subsequent legislative discussions.
  • Revenue Allocation: The bill outlines that the revenue generated from this tax will be allocated to specific state programs, although the exact allocation will be further detailed in the budgetary process.

Affected Parties

  • Businesses: Companies that rely on digital advertising for revenue will be directly impacted by this tax. This includes large tech companies as well as smaller local businesses that utilize online advertising.
  • State Government: The state government will benefit from the additional revenue generated, which can be used to fund public services and initiatives.
  • Consumers: While the bill does not directly tax consumers, there may be indirect effects, such as potential increases in advertising costs that could be passed on to consumers.

Procedural Aspects

  • Current Status: As of April 11, 2025, the bill has been referred to the Ways and Means Committee for further consideration.
  • Related Legislation: The bill is related to several prior-session bills, including:
    • S 8056
    • S 1124
    • A 5842
    • S 4778 (companion bill)

Conclusion

Bill A 7805 represents a significant legislative effort to tax digital advertising, aiming to generate revenue for the state while addressing the growing influence of digital platforms in the advertising market. As the bill progresses through the legislative process, further details regarding the tax rate, exemptions, and revenue allocation will be clarified. Stakeholders, including businesses and consumers, should stay informed about developments related to this bill.

Compiled from official sources — confirm details with the bill’s official record.

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