Committee hears digital‑advertising tax proposal and industry opposition

Representative Paulino introduced testimony on H.3208, a proposal to impose a sales tax on digital advertising services. He argued that declining linear television and the growth of targeted digital ads create an untaxed revenue stream and that the state could collect meaningful revenue for local public television, schools and other needs.

"Just in the city of Boston, there's an estimate... digital advertising will be over $10,000,000,000," Paulino said, arguing the Commonwealth could capture revenue to support local programs.

Opponents included Brianna January of the Chamber of Progress, who urged the committee to oppose the bill. She said the tax would raise costs for small businesses that rely on affordable targeted ads, create privacy and administrative complexities, and potentially undermine free online services. January noted Maryland's experience where litigation delayed implementation and revenue collection: "Maryland... has actually not seen a penny of revenue as that law has been held in courts."

Committee members asked about incidence, small‑business impacts, and administrative mechanisms. The Chamber and other tech representatives offered to provide written analyses and urged careful consideration of competitive and constitutional questions. No vote or committee determination was recorded at the hearing.