California Eyes Digital Ad Tax to Support Local Journalism

California took a baby step toward a tax on digital advertising, but business interests warned the state faces the same “boatload of litigation” that Maryland confronted after launching its first-in-the-nation Digital Advertising Gross Revenues Tax.

California’s Senate Committee on Revenue and Taxation held an informational hearing Wednesday that examined digital advertising taxes as a strategy for addressing the collapse of local journalism. Committee Chairman Sen. Steven M. Glazer (D) said the rise of e-commerce companies over the last two decades has decimated community newspapers in California and undermined the important role local media outlets play in a democratic society.

“Increasingly ...