Understanding Tax Exemptions and Taxables

2020: Digital advertising/digital services tax proposals - DC Would have imposed reduced sales tax of 3 percent on "digital advertising services" and "personal information" services as defined No sourcing provisions Pulled from Budget Support Act after significant outcry from business groups - Maryland Multiple bills would have imposed a "Digital Advertising Gross Revenues Tax❞ on annual gross revenue derived from digital advertising services While House Bill 732 was vetoed by the governor on 7 May 2020, the veto was overridden on 11 February House Bill 732 is now law in Maryland and the new digital advertising services tax is effective for tax years beginning after 31 December 2020 - Nebraska LB 989 would impose sales tax on gross receipts derived from "digital advertisements" LB 946 would create a presumption that all services are taxable unless a specific exemption applies - Nebraska's legislative session reconvened on 20 July and is scheduled to adjourn on 13 August. To date, there is no movement on the bills that would impose tax on digital advertising services ― New York AB 8056 would impose a tax on annual gross revenue derived from digital advertising services AB 9112 would impose a 5 percent tax on the gross income derived from sharing data - Multiple bills would impose sales and use tax on sales (except sales for resale) of digital advertising services New York in session through 2020 KPMG © 2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 24 224

View entire presentation