California Weighs Digital Ad Tax to Fund Mental Health Services

California would join the list of states weighing a tax on digital advertising with a 5% tax to fund youth mental health services under a bill introduced this week.

The 5% tax would apply to gross revenues from digital advertising services in the state. Companies with at least $100 million in global annual gross revenue would pay the tax starting Jan. 1, 2025.

The bill (A.B. 2829) from Assemblymember Diane Papan (D) is separate from possible legislation from Sen. Steve Glazer (D) to impose a similar tax, but use the revenue to prop up local ...