HB4894

Illinois HB4894 imposes a 10% tax on annual gross revenue from digital advertising exceeding $150 million.

HB4894, known as the Digital Advertising Tax Act, introduces a tax on digital advertising revenue in Illinois. The tax applies to entities with annual gross revenue from digital advertising services in the state exceeding $150 million. The tax rate is set at 10% of the assessable base, which is the annual gross revenue derived from digital advertising in the state. The bill outlines procedures for tax filing, including estimated tax payments and penalties for non-compliance. The tax is intended to address the avoidance of state and local use and occupation taxes in the digital era.