Fact Sheet originally published by MPA – The Association of Magazine Media

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Taxes on the use of personal data unfairly target news media entities, are difficult and costly for businesses to administer, and disrupt services valued by consumers.

THE ISSUE

Some state legislatures are considering legislation that would impose a tax on the income derived from the use of personal data. News media entities, including magazine publishers, use advertising and other expected practices that utilize personal data to tailor and enhance the consumer experience, fund public interest investigations and reporting, keep subscriptions affordable, and sustain the cost of journalism and publishing in a changing media landscape.

Proponents of taxes on the use of personal data focus their arguments on the financial impact to large advertising platforms, but the costs of these taxes to businesses are compounded by unprecedented and confusing reporting requirements, unclear subject determinations and attribution ratios that have not been considered in other tax models.

A BETTER SOLUTION

Alternate revenue raisers that don’t threaten access to journalism. If lawmakers do move forward with a tax on the use of personal data, the legislation should:

Exempt news media. Maryland’s digital advertising tax includes an explicit exemption for “news media entities” and a prohibition on the pass-through of fees by advertising platforms.

Target undesirable data practices. The bill should exclude trusted first-party data practices in favor of focusing on non-transparent, unexpected, or potentially harmful data practices.

Clearly define applicability calculations. To minimize the economic harm on small and medium-sized businesses, lawmakers should: increase thresholds of consumers subject to the tax, exempt data collected for a business purpose – including journalism, exclude data provided directly by the consumer, and reject the use of IP address as a nexus determination.

THE TAKEAWAY

• The responsible use of personal data allows news media entities to provide valued services and content to readers, and it sustains public interest journalism.
• Taxes on the use of personal data threaten consumer access to critical news and media content.
• Lawmakers should reject personal data taxes or provide a news media entity exemption.

Magazine Media Delivers

Valued & trusted content 

• Content that is researched, curated and edited.
• Readers value our content, such as educational, culture, science, and information, in long-form articles and digital platforms.

Diverse & multigenerational connections

• Read by more than 90% of U.S. adults across all age groups and demographics, including 18-25.
• A 1.5 billion audience across all its platforms – digital, mobile, video and print.

Commitment & investment to our communities

• More than 240,000 U.S. jobs supported with an annual average wage of more than $98,000.
• Trusted, long-standing first party relationship based on respect and transparency for our readers.
• Partner in environmental stewardship, using biodegradable, recyclable and certified materials.

The post Fact Sheet: Confusing Proposals to Tax Personal Data Threaten Access to Journalism appeared first on News/Media Alliance.

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Fact Sheet originally published by MPA – The Association of Magazine Media

Download PDF of Fact Sheet

Efforts to tax large technology platforms inadvertently harm news media entities, as well as the local businesses and non-profits that support them.

THE ISSUE

Some state legislatures are considering legislation that would impose a tax on revenue derived from digital advertising revenue. News media entities, including magazine publishers, rely on digital advertising revenue to support public interest journalism that provides critical content to Americans.

Proponents of digital advertising taxes say they want to limit their financial impact to large advertising platforms. But in practice, these taxes jeopardize Americans’ access to essential news information.

Digital ad taxes have a disproportionate impact on a key source of publishing revenue that allows publishers to provide the content that educates, informs, and delights readers. In addition, digital ad taxes would impose pass-through costs on local businesses and nonprofits in an already challenging economic climate.

A BETTER SOLUTION

Alternate revenue raisers that don’t discriminate against ad-supported online news media content.

Reject discriminatory taxes. Lawmakers should dismiss tax proposals that directly target revenue that sustains journalism and media.

Exempt news media. Should lawmakers introduce a digital advertising tax, they should include Maryland’s explicit exemption for “news media entities” and Maryland’s prohibition on the passthrough of fees by advertising platforms.

Avoid Constitutional concerns. Maryland’s digital advertising tax has already received multiple court challenges, including on First Amendment grounds. No revenue from the tax has been collected.

THE TAKEAWAY

• Digital advertising taxes threaten consumer access to this critical news and media content.
• Americans rely on ad-supported online content, including magazine media content, for vital news and information.
• Lawmakers should reject digital advertising taxes or provide a news media entity exemption.

Magazine Media Delivers

Valued & trusted content 

• Content that is researched, curated and edited.
• Readers value our content, such as educational, culture, science, and information, in long-form articles and digital platforms.

Diverse & multigenerational connections

• Read by more than 90% of U.S. adults across all age groups and demographics, including 18-25.
• A 1.5 billion audience across all its platforms – digital, mobile, video and print.

Commitment & investment to our communities

• More than 240,000 U.S. jobs supported with an annual average wage of more than $98,000.
• Trusted, long-standing first party relationship based on respect and transparency for our readers.
• Partner in environmental stewardship, using biodegradable, recyclable and certified materials.

The post Fact Sheet: Protect Access to Journalism by Rejecting Taxes on Digital Advertising appeared first on News/Media Alliance.

The post MPA Submits Comments with Maryland Comptroller on Its Proposed Digital Advertising Tax appeared first on News/Media Alliance.

The post MPA Testimony Opposing Proposed Connecticut Digital Advertising Tax appeared first on News/Media Alliance.

The post MPA Submits Letter Opposing Proposed West Virginia Digital Advertising Tax appeared first on News/Media Alliance.

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The post MPA Testimony Opposing Connecticut Digital Advertising Tax Proposals appeared first on News/Media Alliance.

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