*** UPDATE *** I told this to subscribers a bit ago: The Senate has introduced amendment 3 to the revenue bill (HB2755). The amendment deletes Article 92, the digital ad tax, and then removes it from the effective date section. So, if they adopt amendments 2 and 3, there will be no digital ad tax.

Adding: Senate Assignments has moved amendments 2 and 3 to the floor. The tax appears dead.

Adding: The Senate narrowly approved the revenue bill without the ad tax. It now moves to the House.

[ *** End Of Update *** ]

* As of late yesterday, the Democrats were saying that they’d dropped the idea of taxing digital ads on big corporations. But a slightly broader Digital Advertisement Tax Act is included in today’s omnibus revenue bill…

A tax is imposed on each person’s annual gross revenues that are derived from digital advertising services in the State if the person’s annual gross revenues derived from digital advertising in the State exceeds $125,000,000 [original proposal was $150 million]. […]

The rate of tax under this Act is 10% of the person’s assessable base.

There’s other language requiring companies that have at least $25 million in sales to file tax returns, but it doesn’t look like they have to pay anything.

Anyway, Mark Zuckerberg et al ain’t gonna be happy.

…Adding… The revenue estimate on the original digital ad tax was $725 million. So, if they’re estimating a billion dollars in increased revenue (as Sen. Elgie Sims said yesterday), it seems unlikely that this money is included, perhaps because a raft of lawsuits are expected.

…Adding… Ah, OK. A group of progressive Senators working with some House members apparently pushed for this tax. I’d heard earlier today that they were trying to bolster health spending.

…Adding… OK, things are more clear now. If you scroll down to the very end of the revenue bill, you’ll see effective dates. The digital ad tax (Article 92) doesn’t take effect until January 1, 2027.

* Here are a few other items. The dollar estimates come from House Revenue Committee Chair Curtis Tarver during this evening’s hearing…

* Tax amnesty program from October 1, 2025 through November 15, 2025. $195 million.

* Delays final payment from sales tax on motor fuel to Road Fund. $171 million.

* Sports wagering tax: The tax shall be $0.25 per wager for the first 20,000,000 annual combined Tier 1 and Tier 2 wagers. The tax shall be $0.50 per wager for each wager in excess of 20,000,000 annual combined Tier 1 and Tier 2 wagers. $36 million.

* Removes hotel exemption for short-term rental hosting platforms. $15 million.

* Adds nicotine analogs (click here) to the tax rolls, as well as “any form of the chemical nicotine,” except for smoking cessation products. Increase tobacco tax to 44 cents.

* “Joyce v. Finnegan” change, which is explained here: $72 million.