Taxation: other; digital advertising services tax act; create. Creates new act.

HB 4142 would impose a progressive tax on large digital advertising companies operating in Michigan, with rates ranging from 2.5% to 10% based on their global annual revenue. Companies with over $1 million in annual Michigan digital ad revenue (defined as revenue from banner ads, search ads, and similar services) would be required to file annual tax returns starting in 2026, with quarterly estimated payments for those exceeding the threshold. The tax applies to revenue derived from digital advertising services accessed by Michigan users, calculated using a specific apportionment formula. Collected revenue would fund Michigan's school aid and transportation funds.