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California Senator Proposes Digital Advertising Tax Law to Tap into Internet Company Revenue

  • Senator Steven Glazer is considering a Digital Data Extraction Tax Law in California
  • The tax is based on digital advertising revenue
  • Modeled after Maryland’s digital advertising gross receipts tax and Tennessee’s digital barter tax proposal
  • The bill aims to tax gross receipts from the sale of digital advertising services
  • It would only apply to persons with advertising revenue above a certain level
  • Revenue from the tax would support local newspapers
  • The bill requires sellers to capture and retain personally identifiable information about users
  • Attempts to limit application to entities based on revenue derived in the state
  • Aims to avoid challenges that the tax is discriminatory against electronic commerce


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


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