The Ohio House of Representatives today passed House Bill 466, sponsored by State Representative Ryan Smith (R-Bidwell), which exempts all digital advertising from sales and use tax.

In passing the biennial budget last year, the Ohio House effectively voted to retain a tax exemption on all advertising services. However, a recent tax audit interpreted the definition of “Electronic Information Service” (EIS), which is a taxable service, to include digital advertising, potentially subjecting businesses to penalties and interest going back four years. 

“Enactment of this bill means that businesses can utilize digital advertising services tax free, putting less of financial burden on these establishments,” said Rep. Smith.

In effect, this legislation clarifies that digital advertising services, such as the ones that often appear on web pages, are included in the body of professional services that are already exempted under the definition of EIS. This places digital advertising on the same foot as print, radio, and other forms of advertising that are exempt from this tax.

House Bill 466 now goes to the Ohio Senate for further consideration.

Featured Posts

Ohio House Finance Committee Introduces Budget Sub. Bill


The Ohio House Finance Committee today introduced Substitute House Bill 64, legislation which outlines the two-year budget proposal for Ohio by making appropriations and providing policy initiatives in various areas such as education, taxes and healthcare.


Smith Announces Passage Of Bill Requiring The Reporting Of Drug-Dependent Newborns


State Representative Ryan Smith (R-Bidwell) announced today that the Ohio House of Representatives has passed legislation to better monitor the births of babies who are dependent on addictive drugs.


Rep. Smith, Members Of Rx Addiction Study Committee Release Findings And Recommendations


Vice Chairman of the House Prescription Drug Addiction and Healthcare Reform Study Committee Ryan Smith (R-Bidwell) yesterday joined other members of the study committee at a press conference to discuss the study committee’s recommendations and findings.


Ryan Smith Sworn In As State Representative Of The 93rd House District


State Representative Ryan Smith (R-Bidwell) today was sworn in as a member of the Ohio House of Representatives for the 130th General Assembly. He represents the 93rd Ohio House District, which includes Gallia and Jackson counties, as well as portions of Lawrence and Vinton counties.