Rhode Island Governor Wants 10% Tax on Digital Advertising

Jan. 17, 2025, 12:23 AM UTC

Rhode Island would become the second state to tax large technology companies’ digital advertising receipts under a budget proposal from Gov. Dan McKee.

If McKee’s plan is enacted, Rhode Island would follow Maryland, which has faced an onslaught of litigation since implementing a similar levy in 2022.

The digital advertising tax is part of the $14.2 billion fiscal 2026 budget proposal McKee (D) presented Thursday, seeking to close a $250 million budget gap with spending cuts and a handful of revenue raisers. The proposal levies a 10% tax on the gross revenue businesses collect from digital advertising targeted within ...

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