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“The (Problematic) Road to Taxing Digital Advertising”

February 22, 2021

Article by Jennifer Karpchuk and Alissa Gipson on “The (Problematic) Road to Taxing Digital Advertising”

Tax Notes

In an article published in Tax Notes on February 22, 2021, Chamberlain Philadelphia-based Shareholder Jennifer Karpchuk and Houston-based Associate Alissa Gipson examine digital advertising taxes and legal challenges states will face.

“With revenue shortfalls throughout the world brought about by the pandemic, digital advertising taxes are sure to be a hot issue both internationally and in the United States, and they already appear to be on the minds of some state legislators as we begin 2021,” explain Karpchuk and Gipson. “However, the journey to ultimate tax collection for the states will not be easy and is guaranteed to be met with numerous legal challenges along the way.”

The article further explains the direction the Biden administration may take on digital tax and how states and localities are increasingly considering those taxes to fill revenue gaps and take advantage of the proliferation of digital marketing.

“Digital advertising taxes will continue to receive attention during 2021,” says Karpchuk and Gipson. “Despite the potential legal challenges, the United States will likely see more state proposals for digital advertising taxes during the 2021 legislative sessions.”

To read the article in full, subscribers may click here.