Ad Clubs Beat Up on Ad Tax

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A number of Pennsylvania ad councils Tuesday wrote Lieutenant Governor Catherine Baker opposing a bill that would extend the sales tax to services including advertising and promotion.

"Our organizations collectively represent approximately 1,000 professionals from all aspects of the advertising industry--clients, agencies, media and suppliers," they wrote. "A tax on advertising would harm not only businesses in our industry but the Pennsylvania economy and consumers as well."

The Association of National Advertisers earlier sent a letter to the Pennsylvania Senate opposing a new ad tax trying to work its way through the state legislature.

The Pennsylvania Senate Committee on Legislation this week held a hearing on the House bill.

Florida passed a similar law in the 1980s, and it resulted in a sizeable drop--ANA says 12%--in broadcast advertising in major Florida media markets.