Proposed Nebraska Ad Tax Still Alive

Despite passing in an earlier vote, and the strong support of Governor Jim Pillen (R), the Advertising Services Tax Act in Nebraska was defeated prior to the end of the legislative session. The measure would have placed a 7.5% tax on all advertising services in the state for companies with over $1 billion in US revenue. One of the Governor’s motivations for the tax was to raise replacement revenue for proposed lower property taxes.

The industry correctly noted that the tax would have been passed through to local businesses in the form of either higher advertising costs or as a line item on the invoice for the service provider ultimately resulting in higher prices for Nebraska consumers.

AAF Nebraska deserves a substantial amount of credit for this important victory. As previously reported, two members of AAF Nebraska, including Legislative Chair Robert Richardson, testified against the measure before the Legislative Revenue Committee, and many others in the group submitted letters of opposition. Richarson also submitted an op-ed to the Nebraska Examiner voicing opposition to the ad tax.

On March 27, AAF Nebraska conducted the Ad Day Under the Dome. The Chapter invited Senators from the Revenue, Banking, Commerce, Insurance, Educational, and Business & Labor Committees to a “Legislative Breakfast” to share economic data on the impact the advertising industry brings to Nebraska’s economy and share concerns about the proposed advertising tax and data privacy issues. After breakfast attendees walked across the street to the Capitol Building to meet with other Senators and staff about the issues. After the event, AAF Nebraska members followed up with calls and emails to the State Senators with whom they were unable to speak.

Ad Day Under the Dome is an excellent example of the power and importance of the AAF grassroots network.

Despite this victory, the threat remains. Governor Pillen would still like to lower the state’s property tax rates and is traveling the state trying to raise support for his plan, which still includes a proposed tax on many services, including advertising.

California Digital Advertising Tax on Hold

A Digital Advertising Services Tax bill has been introduced in the California State Assembly. It was considered in an April 23 hearing of the Assembly Privacy and Consumer Protection Committee. AAF Sacramento Board member Christie Pierce represented the advertising industry at the hearing. In addition, AAF was joined by AAF District 14, AAF Los Angeles, AAF Orange County, AAF Sacramento, and AAF Silicon Valley on a letter to lawmakers expressing our opposition to the tax.

The bill passed the Committee on Privacy and Consumer Protection and was referred to the Committee on Revenue and Taxation where it has not yet been scheduled for any further action.

Bi-Partisan Privacy Bill Introduced in Congress

U.S. Senator Maria Cantwell (D-WA), Chair of the Senate Commerce Committee, and U.S. Representative Cathy McMorris Rodgers (R-WA), Chair of the House Energy and Commerce Committee have jointly introduced the American Privacy Rights Act.

On April 17, the House Innovation, Data, and Commerce Subcommittee conducted a hearing to discuss the measure.

AAF has long advocated for a national privacy law giving the same protections to consumers and businesses in every state across the country. We are greatly encouraged that a bi-partisan, bi-cameral bill has been introduced. Unfortunately, the bill as introduced is seriously flawed. We have provided comments to lawmakers through our partners in Privacy for America. We look forward to working with Congress to help pass an effective national privacy law that works for all Americans.

State Privacy Update

In the absence of federal action, individual states continue to consider new privacy bills. While AAF supports a national privacy law, we often provide comments to state lawmakers with the goal of ensuring all state laws align as closely as possible with others for ease of business compliance and to ensure all consumers receive the same degree of protection.

Maryland Governor Wes Moore signed the Maryland Online Data Privacy Act into law. The law imposes tough new restrictions on online data collection and ad targeting. AAF had urged the Governor to veto the measure, which we believe includes “the most onerous and restrictive approach to data privacy in the United States to date…The bill’s limitations on data collection are likely to result in significant degradation of beneficial products and services for Maryland consumers and harm local businesses,” The law effectively bans “third-party targeted advertising” based on sensitive data, which includes information that would reveal a consumer’s race, religion, health, sexual orientation and immigration status.

Governor Moore also signed the Maryland Age-Appropriate Design Code Act, which requires online businesses likely to be accessed by users under 18 to create “data protection impact assessments” each time the businesses create new services or features. Those assessments must evaluate whether the new features could harm underage users. The law also requires online businesses to configure minors’ default settings to a “high level” of privacy, unless the business shows that a less private setting is in minors’ best interests.

Legislators in Vermont passed data privacy legislation that contains a limited private right of action and provisions modeled on California’s Age-Appropriate Design Code. Consumers could sue large data holders in limited cases for several specific violations, such as processing sensitive data without consent or selling it. The legislature made last-minute changes to the private right of action including limiting the amount of time it would be in effect. The ability to sue would run from 2027 to 2029 and include review for future policy recommendations. AAF wrote to lawmakers in the state expressing our concern with both the overall bill and the private right of action.

AAF wrote to lawmakers in Maine commenting on the Data Privacy and Protection Act. While the bill passed in the state House of Representatives, lawmakers were not able to work out differences with the Senate version of the bill and the legislature adjourned without passing it.

2025 AAF Advertising Day on the Hill

Plans are underway for the AAF Advertising Day on the Hill for Thursday, March 13, 2025. AAF Advertising Day on the Hill is the event where the power and passion of AAF’s grassroots are demonstrated by gathering in Washington, DC to learn about the issues confronting our industry and walk the halls of Congress to educate lawmakers about the importance of advertising to the U.S., as well as to every state and congressional district.

Much more information will be coming soon, but for now, mark your calendars and plan to join us in Washington, DC March 13, 2025 for AAF’s Advertising Day on the Hill.