BILL NUMBER: S4778
SPONSOR: GIANARIS
 
TITLE OF BILL:
An act to amend the tax law, in relation to establishing a tax on
digital ads
 
PURPOSE:
To establish a tax on digital ads for persons with annual gross revenues
in the state of New York of one hundred million dollars or more.
 
SUMMARY OF PROVISIONS:
Section one of the bill amends the tax law by adding a new article 15 to
the tax law, which establishes findings and intent, sets for defi-
nitions, and describes the conditions for imposition of the tax,
returns, and tax payments.
§ 330 establishes the findings and intent.
§ 331 defines the key terms; "annual gross revenues", "assessable base",
"digital advertising services", "digital interface", "person", and
"user".
§ 332 describes the conditions for imposition of a tax on the annual
gross revenues any person derives from digital advertising services in
the state.
§ 333 describes the conditions for imposition of filing returns for
annual gross revenues derived from digital advertising services.
§ 334 outlines the requirements for tax payment.
Section two of the bill amends the tax law by adding a new § 1816 which
sets the penalty for willful acts or omissions related to the act as
constituting a misdemeanor.
Section three of the bill sets the effective date for taxable years
beginning on and after January 1, 2026.
 
JUSTIFICATION:
Every day, New Yorkers are inadvertently bartering their personal infor-
mation for access to digital platforms as large digital companies
collect their private data and sell it to digital advertisers. By taxing
large companies' massive gross digital advertising revenue, New York
will indirectly tax the rampant exchange of personal data, generating
new, necessary revenue for the state. In a state that has incredible
wealth as well as incredible poverty, it is only fair to ask those who
can afford it to contribute more revenue to properly address our state's
priorities, especially after having evaded sales taxation thus far,
 
LEGISLATIVE HISTORY:
2023-24: S5551 (Gianaris) died in Budget & Revenue / A5842 (Walker) died
in ways & means
2021-22: S1124 (Gianaris) died in Budget & Revenue
2020: S8056-A (Gianaris) died in Budget & Revenue / A10706 (Walker) died
in ways & means
 
FISCAL IMPLICATIONS:
This act will raise revenue for the state.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2026.