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Taxes and the Impact on PPC Budgeting

Pay-per-click ads (PPC ads) can be an important component of any B2B marketing strategy. In recent years, online services – from products sold online to the development of websites themselves – have increasingly become taxable line items, impacting PPC budgeting.

    The Importance of Digital Marketing Budget Planning

    New legislation is being considered in various states which will tax PPC ads. While the reasoning for these new fees is often positioned as it relates to the use of personal “customer” data, the ultimate result is that advertisers may have to account for new digital marketing budget considerations.

     

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    Click Here to Schedule a Free Consultation

    Steady Experience for a Changing Marketplace

    Please note, consultations are available Mon-Fri, 9:00-4:00, EST (New York time zone). Please submit your request and one of our team members will be in touch to confirm your appointment. We look forward to speaking with you!

    • Date Format: MM slash DD slash YYYY
    • :

    •  SEO Audit 
    •  Digital Assessment 
    •  Strategy Review

    Recent legislation news:

    • In Connecticut, a proposed tax on the revenue a provider has earned from social media
      advertising would help fund cyber bullying prevention efforts, though House Bill 5645 does not specify how much that tax would be. Another proposed bill would place a 10 percent tax on annual revenues earned from digital advertising for businesses with annual revenues exceeding $10 billion.
    • In Indiana (House Bill 1312), a surcharge tax would be imposed on social media providers based on their follower count and annual revenue from digital advertising.
    • Most recently in Maryland, a sliding scale tax has passed for businesses’ earnings from digital advertising, but “supporters and opponents agree a court challenge is likely, leading to a potential injunction until the case is resolved.”
    • In New York, a tax on digital advertising would benefit student loan refinancing. If corporations use personal data provided to them, a five percent tax would be placed on the gross income.
    • When personal information is sold in Oregon, a five percent tax would be imposed (House Bill 2392). If enacted, the tax would be imposed on receipts from sales made on or after January 1, 2022, and returns would be due quarterly.
    • In Washington, a business and occupation tax (House Bill 1303) would be imposed on all businesses selling personal data. The tax would be equal to the gross income of the business multiplied by the rate of 1.8 percent.

    Find more details regarding state legislation HERE.

    We Can Help Create Your Effective PPC Strategy

    It will be important to keep a watch on these proposed taxes and how they will affect B2B digital marketing budgets. Contact us with questions about your PPC strategy and digital marketing budget planning. We are here to help.

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