OADA-backed Legislation Introduced to Clarify Digital Advertising is Tax Exempt

Dealers Should Contact Their State Legislators to Urge Support of House Bill 466

OADA-backed House Bill 466, sponsored by State Representative Ryan Smith (R-Bidwell), has been introduced in the Ohio House of Representatives.  The legislation would specifically exempt digital advertising services from sales and use tax. Click here for a copy of House Bill 466. 

House Bill 466 is in response to an Ohio Department of Taxation (DOT) Information Release issued in December that indicated advertising inventory on the Internet is a taxable service if the dealer has the access to control the advertisement (upload data, attach descriptions, etc.).  The DOT has indicated this service meets the definition of an Electronic Information Service (EIS) and is therefore taxable. Click here for a copy of the December DOT release.

What should you do?  Contact your state representative and state senator and urge them to support House Bill 466 using the following key talking points: 

• The DOT’s assessment on the taxability of digital advertising lies directly in contrast with Legislative intent. For the past two state budget cycles, OADA worked very closely with the Legislature to defeat efforts to expand the sales tax base to advertising.

• Subjecting digital advertising services to sales tax will reduce dealer spending on advertising, which in turn will impact sales

Dealers may identify legislators and contact information by clicking here.

Please contact the following at OADA with any questions and to report legislator feedback:

Tim Doran at tdoran@oada.com

Zach Doran at zdoran@oada.com

Joe Cannon at jcannon@oada.com