MA H3208

Imposes a 6.25% sales tax on digital advertising services targeting users located in Massachusetts, with vendors collecting the tax at point of sale and remitting to the Department of Revenue

Exempts vendors with gross annual digital advertising sales below $2,500,000 targeting Massachusetts users from the tax

Allocates 95% of revenue equally among three grant programs: local access television (administered by Dept. of Telecommunications and Cable), public health education campaigns on mental health and social media safety (administered by DPH), and AI in education research (administered by DESE)

Reserves up to 5% of revenue for administrative costs, with 1% to Department of Revenue and 1.33% each to the three administering agencies

Takes effect January 1, 2027, with grant disbursements delayed until January 1, 2028 to allow fund accrual; program funds must be used within 2 years or revert to the general allocation pool