PPC Tax and the Impact on 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

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.

Legislation Updated as of January 2022:

• In Connecticut, a proposed PPC 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. This bill has not yet faced a vote.
• 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 PPC 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. Learn more about Senate Bill 1124. 
• When personal information is sold in Oregon, a 5 percent tax would be imposed (House Bill 2392). If enacted, the PPC tax would be imposed on receipts from sales made on or after January 1, 2022, and returns would be due quarterly. This bill has not yet faced a vote.
• 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. This bill has been reintroduced and retained in present status for the 2022 regular session. 

We Can Help Create Your Effective PPC Strategy

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

Stifel Marcin – The B2B Marketing Agency

Unlike many advertising and marketing agencies, B2B isn’t just something that we do, it’s all we do. We’ll work to help your brand achieve its goals through the strategic combination of creativity, communication and technology. Our focused client intake processes give us the ability to thoroughly understand your business, products and objectives, working to identify the competitive advantages and opportunities that will grow awareness, leads and sales. We develop innovative marketing plans with strategic, data-driven processes, presenting complex ideas and compelling messages that position your business ahead of the competition. As your cooperative partner, our integrated B2B marketing agency is dedicated to your success. If you want to know more about how effective PPC strategies can increase your ROI, we’d like to talk. Reach out today.