The proposed bill establishes a tax on digital advertising services for entities with worldwide annual gross revenue of $25 million or more. The tax is assessed at a rate of 10% on the annual gross revenue derived from digital advertising services within the state. The bill includes definitions for key terms such as "annual gross revenue," "digital advertising service," and "user," and outlines the process for filing tax returns, including deadlines and requirements for maintaining records. Additionally, it grants the department the authority to conduct audits to ensure compliance and verify the correct amount of tax collected.

The bill also specifies penalties for failure to file returns or make payments, allowing the department to assess penalties and interest as necessary. All revenue collected from this tax will be deposited into the general fund. The effective date for the implementation of this tax is set for January 1, 2026.