Illinois Enacts Digital Advertising Tax and Social Media Platform Fees

• Illinois will impose a 10% tax on targeted digital advertising services aimed at Illinois consumers, effective January 1, 2027.
• The tax applies to providers with at least $1 million in annual gross receipts from targeted digital ads tied to Illinois users.
• A separate monthly fee will apply to large social media platforms, ranging from $0.10 per Illinois user up to $165,000 plus $0.50 per user for platforms with over 1 million Illinois users.
• Targeted digital advertising includes search, social media, programmatic, and behavioral ads, so many businesses beyond traditional ad platforms may be affected.
• Compliance rules are still pending, and potential legal challenges in other states could affect implementation.

Source: thompsontax.com

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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