PHILADELPHIA (KYW Newsradio) — The Pennsylvania House has passed a bill to tax digital ad revenue. Supporters say it will force billionaires to pay their fair share, but opponents argue the costs will be passed on to consumers.
The legislation would extend Pennsylvania’s 5% gross receipts tax to include digital ad revenue. The bill’s prime sponsor, Philadelphia Democrat Elizabeth Fiedler, said it would bring in an estimated $500 million a year, largely from big tech companies like Google, Meta, Amazon and Microsoft, with an exemption for local news sites.
“Some of the wealthiest corporations in the entire world have gotten a free pass in our state for too long,” she said. “That is what this bill is about. This bill is about holding those corporations accountable. ... Regular people can’t pay a single dollar more, and they shouldn’t have to. It’s time to make these big tech corporations that are making huge profits off of us pay their fair share to Pennsylvania.”
Initially, the revenue was to go to the general fund, but the bill was amended to go toward property tax relief for seniors. However, Republican state Rep. Robert Ledbetter said the tax would hurt the very people it’s intended to help.
“These organizations, like any other business here in Pennsylvania, would face an increased cost of goods, which ultimately would be passed on to the consumer,” he said.
House Republican floor leader Jesse Topper agreed.
“Who actually pays the taxes? Well, it’s big business, right? Is it? Is that how our economy has ever worked, or does it eventually work its way down to the consumer?” he asked.
The bill passed the House 139-63, with 39 Republicans voting in favor and two Democrats voting against. It now heads to the Republican-majority state Senate.
