Establishes a tax on digital ads

This bill imposes a 7% tax on annual gross revenue from digital advertising services in New York for companies with over $100 million in such revenue. It directly affects large digital platforms (like social media and search engines) that use targeted advertising based on user data, requiring them to pay tax on revenue generated from ads served to New York users. The tax applies to digital ads delivered via websites, apps, or other digital interfaces, with companies earning $1 million or more in digital ad revenue required to file annual returns. The law excludes smaller platforms and government entities, and tax payments begin for 2026 tax years.