State governments in the USA want taxes to be deducted from internet ads that are displayed to users. The first enacted law predicts cuts of up to 10 percent.

The US Maryland state senate passed legislation requiring taxes to be paid for online advertising. The draft, previously rejected by the Governor, passed the senate for the second time in a week. Thus, it became the first state in the country to tax internet advertising.

Tax on internet ads
Normally, internet giants pay tax to the state at certain rates on the income they earn. Revenues also include types such as advertisements, sales or sponsorship. The state of Maryland is after a separate tax for internet advertising.

Of course, taxes will not go into the vault. It is stated that all of them will be spent on the development of educational institutions in the state. The Senate wants advertising to 6 million internet users living in the state to come at a price, which should be spent on improving the quality of education, which will indirectly contribute to the development of internet advertising.

According to the law, businesses that exceed $ 1 million in advertising revenues are subject to tax in the state. It will not tax if its global annual earnings are below $ 100 million. Between $ 100 million – $ 1 billion 2.5 percent, between $ 1 billion – $ 5 billion, a cut of 5.5 percent will be made between $ 5 billion – $ 15 billion, and a 10 percent cut over $ 15 billion.

Naturally, internet businesses are against the law. Businesses in the state, including internet giants, say the law will undermine entrepreneurship. These businesses, which formed a coalition last year, will likely apply for the law’s annulment. However, similar draft laws have been raised in other states.

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