This bill amends the Tax Reform Code of 1971 by expanding the imposition of the gross receipts tax to include companies providing digital advertising services in Pennsylvania. Specifically, it introduces a new subsection that mandates a tax of forty-five mills, plus a surtax of five mills, on gross receipts derived from digital advertising services displayed to users on digital interfaces within the Commonwealth. The bill defines "digital advertising services" and "digital interface," clarifying the scope of the tax. Additionally, it exempts gross receipts from advertising services displayed on digital interfaces owned or operated by broadcast or news media entities.

The bill also retains existing provisions regarding the taxation of various transportation and telecommunications services while removing certain exclusions related to mobile telecommunications services and internet access sales. The amendments will take effect for taxable years beginning after December 31, 2025, and the act is set to take effect immediately upon passage.

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