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Texas has now joined the growing number of states proposing digital advertising taxes that we have covered previously on SALT Savvy, including Maryland’s first-in-the-nation digital advertising tax law and other proposals from Connecticut, New York, and Montana. This new Texas bill—H.B. 4467— would take effect in 2022. The Texas proposal is very similar to the recently-enacted Maryland digital ad tax (H.B. 732) and would impose a new “digital advertising tax” on annual gross revenues derived…

As part of the growing trend of states seeking to tax digital activities and data, New York is considering yet another data tax proposal that would tax the collection of personal data for commercial purposes. This latest proposal—which is contained in Senate Bill 4959—would impose a new excise tax “on the collection of consumer data of individual New York consumers by commercial data collectors.” The tax would apply regardless of how the data is collected, whether by electronic or other means. Under the proposal, “consumer data” is “any information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked with a consumer, whether directly submitted to the commercial data collector by the consumer or derived from other sources,” and a “consumer” includes individuals who purchase goods or services from a commercial data collector and individuals who use the services of a commercial data collector, whether charged for those services or not. A “commercial data collector” is a “for-profit entity that: (i) collects, maintains, uses, processes, sells or shares consumer data in support of its business activities; and (ii) collects consumer data, other than consumer contact information, on more than one million individual New York consumers in a month within the calendar year.” The bill would add the tax to a new section 186-h, within Article 9 of the New York Tax Law.

Several states continue to move forward with the taxation of digital advertising and new tax proposals have entered the fray.  We last updated you on the attempts by Maryland, Nebraska, and New York.  Nebraska had a hearing on its sales tax bill in February, with relatively little movement after that.  In contrast, Maryland and New York have continued their move towards imposing taxes on digital advertising in some form and West Virginia has entered the mix.