PA SB1199

Expands Pennsylvania's gross receipts tax to include digital advertising services displayed to users on digital interfaces within the Commonwealth, covering banner ads, search engine ads, interstitial ads, and similar advertising that uses personal information of users

Imposes a tax rate of 50 mills total (45 mills base tax plus 5 mill surtax) on each dollar of gross receipts from digital advertising services

Exempts broadcast entities (TV and radio stations) and news media entities from the digital advertising tax on ads displayed through their own digital platforms

Applies to taxable years beginning after December 31, 2025

Amends Section 1101 of the Tax Reform Code of 1971 to add digital advertising providers to the list of entities subject to the existing gross receipts tax framework