|SAME AS||No Same As|
|Add Art 15 330 - 333, 1816, Tax L|
|Enacts the digital ad tax act (DATA); establishes a tax on annual gross revenue derived from digital ads.|
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STATE OF NEW YORK ________________________________________________________________________ 8056--A IN SENATE March 13, 2020 ___________ Introduced by Sen. GIANARIS -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to establishing a tax on digital ads The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "digital ad 2 tax act (DATA)". 3 § 2. The tax law is amended by adding a new article 15 to read as 4 follows: 5 ARTICLE 15 6 TAX ON DIGITAL ADS 7 Section 330. Definitions. 8 331. Imposition of tax. 9 332. Returns. 10 333. Tax payment. 11 § 330. Definitions. As used in this article, the following terms shall 12 have the following meanings: 13 1. The term "annual gross revenues" means income or revenue from all 14 sources in New York state, before any expenses or taxes, computed 15 according to generally accepted accounting principles. 16 2. The term "assessable base" means the annual gross revenues derived 17 from digital advertising services in the state. 18 3. The term "digital advertising services" includes advertisement 19 services on a digital interface, including advertisements in the form of 20 banner advertising, search engine advertising, interstitial advertising, 21 and other comparable advertising services, that use personal information 22 about the people the ads are being served to. 23 4. The term "digital interface" means any type of software, including 24 a website, part of a website, or application, that a user is able to 25 access. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15815-03-0S. 8056--A 2 1 5. (a) The term "person" means an individual, receiver, trustee, guar- 2 dian, personal representative, fiduciary, or representative of any kind 3 and any partnership, firm, association, corporation, or other entity. 4 (b) The term "person", unless expressly provided otherwise, does not 5 include a governmental entity or a unit or instrumentality of a govern- 6 mental entity. 7 6. The term "user" means an individual or any other person who 8 accesses a digital interface with a device. 9 § 331. Imposition of tax. 1. There is hereby imposed and shall be paid 10 a tax on the annual gross revenues any person derives from digital 11 advertising services in the state. 12 2. The tax imposed shall be apportioned to the state by the apportion- 13 ment factor determined pursuant to this section. The apportionment 14 factor is a fraction, determined by including only those receipts, net 15 income, net gains, and other items described in this section that are 16 included in the computation of the taxpayer's business income for the 17 taxable year. The numerator of the apportionment fraction shall be equal 18 to the sum of all the amounts required to be included in the numerator 19 pursuant to the provisions of this section and the denominator of the 20 apportionment fraction shall be equal to the sum of all the amounts 21 required to be included in the denominator pursuant to the provisions of 22 this section. 23 3. (a) The annual gross revenues of a person derived from digital 24 advertising in the state shall be included in the numerator of the 25 apportionment fraction. The annual gross revenues of a person derived 26 from digital advertising in the United States shall be included in the 27 denominator of the apportionment fraction. 28 (b) The commissioner shall adopt regulations to determine the amount 29 of revenue derived from each state in which digital advertising services 30 are provided. 31 4. The digital advertising gross revenues tax rate is: 32 (a) two and one-half percent of the assessable base for a person with 33 global annual gross revenues of one hundred million dollars through one 34 billion dollars; 35 (b) five percent of the assessable base for a person with global annu- 36 al gross revenues of one billion one dollars through five billion 37 dollars; 38 (c) seven and one-half percent of the assessable base for a person 39 with global annual gross revenues of five billion one dollars through 40 fifteen billion dollars; and 41 (d) ten percent of the assessable base for a person with global annual 42 gross revenues exceeding fifteen billion dollars. 43 § 332. Returns. 1. Each person that, in a calendar year, has annual 44 gross revenues derived from digital advertising services in the state of 45 at least one million dollars shall complete, under oath, and file with 46 the commissioner a return, on or before April fifteenth the year follow- 47 ing the effective date of this article. 48 2. (a) Each person that reasonably expects the person's annual gross 49 revenues derived from digital advertising services in the state to 50 exceed one million dollars shall complete, under oath, and file with the 51 commissioner a declaration of estimated tax, on or before April 52 fifteenth of that year. 53 (b) Any person required to file a declaration of estimated tax for a 54 taxable year pursuant to paragraph (a) of this subdivision, shall 55 complete and file with the commissioner a quarterly estimated tax returnS. 8056--A 3 1 on or before June fifteenth, September fifteenth, and December fifteenth 2 of such year. 3 3. Any person required to file a return pursuant to this section shall 4 file with the return an attachment that states any information that the 5 commissioner requires to determine annual gross revenues derived from 6 digital advertising services in the state. 7 4. Any person required to file a return under subdivision two of this 8 section shall maintain records of digital advertising services provided 9 in the state and the basis for the calculation of the digital advertis- 10 ing gross revenues tax owed. 11 § 333. Tax payment. 1. Except as provided in subdivision two of this 12 section, each person required to file a return under section three 13 hundred thirty-two of this article shall pay the digital advertising 14 gross revenues tax with the return that covers the period for which the 15 tax is due. 16 2. Any person required to file estimated digital advertising gross 17 revenues tax returns under paragraph (b) of subdivision two of section 18 three hundred thirty-two of this article shall pay: 19 (a) at least twenty-five percent of the estimated digital advertising 20 gross revenues tax shown on the declaration or amended declaration for a 21 taxable year: 22 i. With the declaration or amended declaration that covers the year; 23 and 24 ii. With each quarterly return for that year; and 25 (b) any unpaid digital advertising gross revenues tax for the year 26 shown on the person's return that covers that year with the return. 27 § 3. The tax law is amended by adding a new section 1816 to read as 28 follows: 29 § 1816. Digital ad tax. Any willful act or omission by any person 30 which constitutes a violation of any provision of article fifteen of 31 this chapter shall constitute a misdemeanor. 32 § 4. This act shall take effect immediately and shall apply to taxable 33 years beginning on and after January 1, 2021.