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."

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ABOUT THE ANA

The ANA (Association of National Advertisers) accelerates growth for marketing professionals, brands, and the entire industry. With a mission to shape the future of marketing, the ANA sets the agenda for the industry, connecting its members to unparalleled expertise, industry-leading resources, and an influential global network. Representing over 1,600 companies — including 1,000+ client-side marketers, 600 marketing solutions providers, and 20,000 brands — ANA members collectively influence $400 billion in annual marketing spending. By championing the 12-point ANA Growth Agenda and the CMO Growth Council, the ANA drives actionable change, empowers marketers, shapes the marketing ecosystem, and delivers exceptional experiences at every touchpoint. Since 1910, the ANA has been setting the agenda for industry transformation. It enables marketers to advance their ambitions, make better decisions, and create lasting impact for their organizations and the industry.