California Ad Tax Bill Gets a Hearing

The California Senate Governance and Finance Committee will hold a hearing on Wednesday, May 16th on a bill to impose a new tax on advertising and other business services. SB 993 was introduced in February by Senator Bob Hertzberg. He recently amended the bill to specifically call out advertising to be subject to the new sales tax of 4.75 percent.  

Senator Hertzberg has proposed similar legislation in the past. Fortunately, under the state constitution, passage of SB 993 would require a 2/3 vote in both the Senate and Assembly.

ANA will submit a statement to the committee opposing the bill and we urge our members to do the same to help assure that these types of proposals do not gain momentum.