This bill amends the Tax Reform Code of 1971 by expanding the imposition of the gross receipts tax to include digital advertising services. Specifically, it introduces a new category of taxable services that encompasses advertisements displayed on digital interfaces within Pennsylvania, such as banner ads and search engine advertising. The bill defines key terms related to digital advertising, including "digital advertising services," "digital interface," and "user." Additionally, it establishes a tax exemption for gross receipts derived from digital advertising services displayed on digital interfaces owned or operated by broadcast or news media entities.

The bill also clarifies that the tax will be set at forty-five mills, with an additional surtax of five mills on each dollar of gross receipts. The changes will take effect for taxable years beginning after December 31, 2025. Overall, this legislation aims to modernize the tax code by addressing the growing digital advertising sector while providing specific exemptions for traditional media entities.

Statutes/Laws affected:
Printer's No. 2050 (Jun 30, 2025): P.L.6, No.2