Taxation: other; digital advertising services tax act; create. Creates new act.

Michigan House Bill 4142, introduced on February 26, 2025, proposes a new tax on digital advertising services. The tax would apply to companies with global annual revenues from digital advertising services, with rates ranging from 2.5% to 10% based on revenue brackets. The revenue generated would be allocated to the State School Aid Fund and the Michigan Transportation Fund. ([legiscan.com](https://legiscan.com/MI/text/HB4142/id/3144535?utm_source=openai))

While specific media coverage is limited, the bill's introduction suggests a proactive approach to taxing large digital advertising firms, potentially leveling the playing field for local businesses. By targeting companies with substantial global revenues, the tax aims to ensure that major digital platforms contribute fairly to Michigan's economy.

The bill's focus on large digital advertising companies may face opposition from the tech industry, which could argue that such taxes may lead to increased advertising costs for consumers and businesses. Additionally, concerns about the potential for reduced investment in digital advertising within the state could arise.