Fiedler, Abney, Inglis propose taxation of digital advertisements sold by mega-corporations
Rep. Aerion Andrew Abney June 30, 2025 | 2:31 PM
HARRISBURG, June 30 – Amid negotiations for the 2025-26 state budget, state Reps. Elizabeth Fiedler, D-Phila.; Aerion Abney, D-Allegheny; and John Inglis, D-Allegheny, introduced legislation to tax digital advertisements. The bill, H.B.1678, could generate millions in revenue for the commonwealth.
Big Tech companies like Google, Meta, Amazon, and Microsoft make astronomical profits on Pennsylvanians by collecting private data from individuals to sell targeted ads. These ads often take the form of banners on news sites, artificially boosted search engine results, and interruptions to videos – none of which are subject to taxation. The result is an industry projected to be worth $1 trillion in 5 years, with no benefit to Pennsylvania communities.
The legislation proposes including digital advertisements in the gross receipts tax, which is set at 5%. The tax is based on where ads are viewed, meaning corporations can’t relocate to avoid paying the tax.
“We all agree that Pennsylvania needs more revenue come budget season to fund the public services we care about, like public schools, libraries, and communities,” Fiedler said. “The fact that mega-corporations can use our private data to sell us ads that make our experience on the internet more difficult and frustrating – without contributing anything to our commonwealth – is insulting. It’s time for the billionaires to contribute and pay up.”
By implementing a digital advertising tax, Maryland was able to raise millions from Big Tech companies to fund public education in just a few years.
"Pennsylvanians deserve a fair Tax Code, one that doesn’t let tech giants profit off our communities without paying their share," said Inglis. "This bill makes a commonsense change by applying the gross receipts tax to digital advertising, just like we already do for other industries. Other states like Maryland have already taken this step, raising over $170 million to fund critical services. It’s time we do the same to invest in our schools, infrastructure, and communities. At the same time, we’re protecting local broadcasters and independent news outlets who serve the public good. It’s about fairness, accountability, and making sure our laws keep pace with the modern economy."
The introduction of H.B.1678 comes days after the House passed H.B.1610, a bill that would institute combined reporting and truly close the Delaware loophole, which allows multi-state corporations to hide profits and avoid taxation.
Thanks in part to corporate tax loopholes, Pennsylvania has one of the most regressive tax structures in the nation. When multi-state corporations pay less than their fair share, a greater tax burden is placed on Pennsylvania-based companies, small businesses, and individual taxpayers.
House Bill 1678 now awaits consideration in the House.