ANA Statement on Likely Passage of California SB 1327

May 8, 2024 — Chris Oswald, the ANA's EVP, Head of Law, Ethics, and Government Relations issued the following statement in anticipation of SB 1327 passing out of the California Senate Revenue and Taxation Committee:

"A tax on digital advertising is a tax on the California businesses that depend on such advertising to reach new customers, raising costs and hurting their ability to grow. The proposed ad tax in SB 1327 is particularly pernicious, as it would target the companies that are among the largest sources of both ad revenue and traffic for California's ethnic and independent media outlets, thus choking off the very funding for journalism it claims to protect.

"Worse, this tax could end up costing California residents hundreds of millions of dollars, as similar taxes have been overturned by the courts after being challenged for conflicts with the Constitution and existing federal law, potentially forcing California to refund any money collected, plus interest.

"We urge the California Senate to reject this legally-dubious, costly, and unfair tax on digital advertising, so the state's businesses can continue to afford the advertising they need to succeed."

###

ABOUT THE ANA

The Association of National Advertisers (ANA) is the definitive voice of the marketing industry. Since 1910, we have set and advanced the agenda for marketing transformation, connecting over 1,600 member companies to an influential global network, insights and resources that drive growth. Our members represent 20,000 brands and $400 billion in annual marketing investment. Through industry-leading research, the CMO Growth Council, and our proprietary Growth Agenda and Practices, the ANA empowers marketers to shape the future of marketing and create lasting impact for their organizations and the industry.