Senate Bill No. introduced by J. Trebas, D. Emrich, and G. Nikolakakos 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 includes provisions for audits of digital advertising services to ensure compliance with tax obligations, penalties for failure to file or pay taxes, and the distribution of collected tax revenue to the general fund. The legislation also grants rulemaking authority to the department to implement the tax provisions and specifies that the act will take effect on January 1, 2026.