MA S2017

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

Establishes tiered tax rates based on total annual gross revenues: 5% for companies with $50-100 million in revenue, 10% for $100-200 million, and 15% for revenues exceeding $200 million

Requires companies with at least $100,000 in Massachusetts digital advertising revenue to file annual returns by April 15, with quarterly estimated tax payments due for those expecting to exceed the threshold

Applies to digital ads shown on devices with Massachusetts IP addresses or to users known/presumed to be located in the state

Takes effect for the tax year beginning January 1, 2024