Taxing Tech Giants on Cash-Strapped States’ Agendas in New Year

Taxing features of the digital economy will be a high priority in many states next year with legislatures expected to modernize their tax codes and capture new revenue to replenish their pandemic-wounded budgets.

Lawmakers are preparing to file bills from Florida to Washington, patching up holes in their tax systems that prevent levies on e-commerce, online marketplaces, and streaming services. And some states, including Maryland and New York, could make history by enacting the first laws capturing a slice of the digital advertising revenue collected by social media, search engine, and streaming services companies.

The spate of proposals ...