Ad Tax Threats Possible in States

March 31, 2016 – Since many state legislatures only meet for a few weeks or months in the beginning of the year, and nearly all must meet early year budget deadlines, talk of taxing advertising usually occurs in the winter and spring. 2016 is no exception. The AAF has received reliable reports that taxing advertising has been the subject of discussion by some lawmakers in Illinois, Louisiana, Oklahoma, West Virginia and the city of Tucson, Arizona.

At this writing, none of the ad taxes are thought to be serious threats. In fact, there does not even appear to be legislative language for them. However, the fact that lawmakers discuss them as a revenue raising option underscores how persistent the ad tax issue is.

The AAF has been in contact with local ad clubs and allied organizations in the states and is ready to mobilize should any of the proposals become serious threats. If any of the AAF’s members hear talk of taxing – or any other threat – to advertising, please contact Clark Rector, AAF EVP-Government Affairs, as soon as possible.