Updates on Ad Tax Threats in Ohio and Minnesota

As we posted on February 7th, Governors John Kasich (R-OH) and Mark Dayton (D-MN) have proposed new taxes on advertising and other business services as part of their FY14 budget package. In each case, the Governors have called for reducing the sales tax rate but broadening the base by extending the tax to more services. Under Governor Kasich’s proposal, only those services considered “essential to modern life” such as healthcare would be exempt from taxation.

There are now more details available on these proposals. A report from the Minnesota Revenue Department is available here. A description of Ohio Governor Kasich’s budget proposal is available here.   

We are working closely with our member companies as well as industry groups in the states to oppose these new taxes. We have joined with the Minnesota Communications Industry Coalition, a group of about a dozen marketing and media associations. We are working with broadcasters and other groups in Ohio to build a similar coalition there.

We will continue to marshal the efforts of all of our members to respond to these threats and keep you informed about further developments. If you have information about the ad tax proposals in Minnesota, Ohio or any other state, please contact Keith Scarborough, Senior Vice President for Government Relations (kscarborough@ana.net) or Dan Jaffe, Group Executive Vice President (djaffe@ana.net)  in ANA’s Washington, DC office at (202) 296-1883.