Assembly Bill A5842

2023-2024 Legislative Session

Establishes a tax on digital ads

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Current Bill Status - In Assembly Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2023-A5842 (ACTIVE) - Details

See Senate Version of this Bill:
S5551
Current Committee:
Assembly Ways And Means
Law Section:
Tax Law
Laws Affected:
Add Art 15 §§330 - 334, §1816, Tax L
Versions Introduced in Other Legislative Sessions:
2019-2020: S8056
2021-2022: S1124

2023-A5842 (ACTIVE) - Summary

Establishes a tax on annual gross revenue derived from digital ads.

2023-A5842 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5842
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 23, 2023
                                ___________
 
 Introduced by M. of A. WALKER -- read once and referred to the Committee
   on Ways and Means
 
 AN  ACT  to  amend  the  tax  law,  in relation to establishing a tax on
   digital ads
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  The tax law is amended by adding a new article 15 to read
 as follows:
                                ARTICLE 15
                            TAX ON DIGITAL ADS
 SECTION 330. FINDINGS AND INTENT.
         331. DEFINITIONS.
         332. IMPOSITION OF TAX.
         333. RETURNS.
         334. TAX PAYMENT.
   § 330. FINDINGS AND INTENT. THE LEGISLATURE  FINDS  AND  DECLARES  THE
 FOLLOWING:
   1.  MANY  GOODS  AND  SERVICES THAT HAVE BEEN TRADITIONALLY SUBJECT TO
 STATE AND LOCAL SALES USE TAXES HAVE AVOIDED  TAXATION  IN  THE  DIGITAL
 ERA.    HOWEVER,  MANY DIGITAL TRANSACTIONS ARE HARDER TO BRING INTO THE
 SALES TAX BASE BECAUSE INSTEAD OF PAYING A MONETARY FEE, CUSTOMERS SOME-
 TIMES BARTER THEIR PERSONAL INFORMATION FOR ACCESS TO DIGITAL PLATFORMS.
 THIS PERSONAL INFORMATION IS IN TURN SOLD FOR USE IN TARGETED ADVERTISE-
 MENTS ON DIGITAL PLATFORMS. TO TAX THIS CONSUMPTION, LEADING TAX  ECONO-
 MISTS  HAVE  SUGGESTED USING THE RECEIPTS EARNED FROM DIGITAL ADVERTISE-
 MENTS AS A PROXY FOR THE VALUE OF THE BARTER.
   2. AS HAS BEEN NOTED BY MANY, INCLUDING THE ORGANIZATION FOR  ECONOMIC
 CO-OPERATION  AND  DEVELOPMENT, THE VALUE OF THE CONSUMPTION PROVIDED BY
 DIGITAL PLATFORMS IS TYPICALLY GREATER AS THE SIZE  OF  ITS  NETWORK  IS
 GREATER.  THE  LEGISLATURE  FINDS THAT THE CONSUMPTION VALUE PROVIDED BY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02522-02-3
 A. 5842                             2
              

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