HARRISBURG – Legislation taxing digital ads has passed the PA House with bipartisan support. House Bill 1678 would update PA’s existing gross receipts tax to include the sale of digital advertisements with the majority of the tax paid by Big Tech corporations, including Google, Meta, Amazon, TikTok, and Microsoft. The tax applies to the platform selling ad space on websites and apps, not the retailer paying to promote their product. Updating the gross receipts tax to include digital advertising could raise $500 million annually in new revenue for PA. Revenue is likely to grow, with the digital ads industry projected to be worth $1 trillion in five years. The bill goes to the PA Senate.
