An Act establishing a tax for online advertising

This bill would impose a 6.25% excise tax on digital advertising services (like banner ads, search ads, and app ads) sold to users with IP addresses located in Massachusetts. It directly affects digital advertising companies generating revenue from Massachusetts users, requiring them to pay tax on annual gross revenue exceeding $1 million from these services. The tax is calculated based on revenue from ads delivered to MA users (determined by IP address), with the first $1 million of such revenue exempt. Companies must remit the tax monthly to the state revenue commissioner.