States tinker with taxing ads - Broadcasting & Cable

States tinker with taxing ads

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With the vast majority of states having both budget shortfalls and
requirements that they balance their budgets, creative tax strategies could
spell trouble for the ad industry.

For example, according to the American Advertising Federation, the
Connecticut legislature has passed a stopgap deficit-reduction bill that
includes a 3 percent ad-production-services tax.

Meanwhile, in Kansas this week, the legislature will hold a hearing on a bill
that would extend the sales tax to services, including the sale of ad time and
space.

Florida passed such a law a few years back, but that state eventually overturned
it.

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