Senate Bill No. [insert bill number] proposes the implementation of a tax on digital advertising services for entities with worldwide annual gross revenue of $25 million or more. The tax, set at a rate of 10%, will be assessed on the annual gross revenue derived from digital advertising services within the state. The bill outlines definitions for key terms such as "annual gross revenue," "digital advertising service," and "user," and establishes the requirement for affected entities to file tax returns and estimated tax declarations by specified deadlines. Additionally, the bill grants the department authority to adopt administrative rules for implementation and outlines the audit process for compliance verification.

The legislation also includes provisions for penalties and interest for failure to file or pay the tax, as well as a distribution mechanism for the collected revenue, which will be deposited into the general fund. The bill specifies that it will take effect on January 1, 2026, and includes a codification instruction to integrate the new sections into Title 15 of the Montana Code.