his bill passed the House 139-63 on June 9th, 2026. The Bill: HB1678 Rep Fiedler(D)
The Bill: HB1678 Rep Fiedler(D)
Title: Digital Advertising Tax
What Does it Mean: Taxing Google, Meta, Amazon, and Microsoft on their advertising and allocating the tax money. The new revenue goes into a dedicated restricted account within the Property Tax Relief Fund to fund additional property tax rebates for eligible seniors (age65+)
- Companies, corporations, partnerships, etc., providing digital advertising services in Pennsylvania. This includes revenue from ads (banner, search engine, interstitial, etc.) displayed on digital interfaces (websites, apps) to users in PA, especially those using personal data.
- Primarily targets large digital platforms and ad networks.
- Recipients of benefits: Homeowners/renters who are seniors (age 65+) or live in a household with a senior. They can claim an additional property tax rebate on their homestead (home, mobile home, etc.) equal to the increase in their local school real estate taxes since the year they (or the senior in the household) turned 64.
- Broader impact: Affects businesses that buy/sell digital ads in PA and Pennsylvania senior homeowners seeking extra tax relief.
Where Will the Tax Money Go?
- Revenue from the new digital advertising gross receipts tax is deposited into a restricted account in the Property Tax Relief Fund.
- This money is used exclusively to pay the additional property tax rebates to eligible seniors.
Who Is Exempt?
- Broadcast entities (TV/radio stations) and news media entities (primarily engaged in newsgathering/reporting/publishing news) are exempt from the digital ads tax on ads displayed on their own interfaces.
- Existing exemptions in the gross receipts tax (e.g., certain internet access sales, resales, phone hardware) will continue.
- No broad business-size exemptions mentioned — it targets providers of digital advertising services.
The Go Big Small Biz Network’s Position: Oppose, why?
- Maryland is being sued by Google and others over the tax in 2021.
- Our state should expect similar lawsuits if our bill in passed. Litigation could take multiple years.
- Would the tax dollars go to Seniors? Dollars would need to be carefully audited.
- Consumers of the digital ads will pay the costs. Google would pass the tax to consumers.
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Any Questions? Email me, tracey@gobigsmallbiz.com Thanks,
Tracey and Jeff Wakeen
