MA H3263

Creates a new tax on annual gross revenues from digital advertising services (banner ads, search engine ads, interstitial ads, promoted/sponsored content) delivered to users in Massachusetts

Applies graduated tax rates based on company size: 5% for companies with $50-100 million in annual gross revenues, 10% for $100-200 million, and 15% for revenues exceeding $200 million

Requires annual tax returns by April 15 for any entity with at least $100,000 in Massachusetts digital advertising revenues, plus quarterly estimated tax filings for those expecting to exceed that threshold

Determines Massachusetts nexus through user IP addresses indicating device location in the state or reasonable presumption of in-state device use

Takes effect for tax year beginning January 1, 2026