Harrisburg, Pa. − June 3, 2026 − Senators Lindsey M. Williams (D-Allegheny), Nikil Saval (D-Philadelphia), and Katie Muth (D-Berks/Chester/Montgomery) applauded the House Finance Committee for passing HB 1678, Digital Advertising Tax, out of committee today. This legislation is aimed at raising much needed revenue for the state by extending the gross receipts tax to include digital ads in Pennsylvania. It now moves to the Floor for consideration by the full House of Representatives.
HB 1678 is sponsored by Reps. Elizabeth Fielder (D-184), Aerion Abney (D-19), and John Inglis (D-38). Senators Williams, Saval, and Muth are the prime sponsors of SB 1199, the Senate companion bill to HB 1678.
“Big Tech is making billions of dollars on ads targeting Pennsylvanians and harvesting our data, but they aren’t paying any state taxes on that revenue,” said Senator Williams. “By implementing this Digital Ad tax, we take a step towards making TikTok, Meta, Google, and Microsoft pay their fair share—and that means Pennsylvania can make progress towards fully and fairly funding our public schools, ensuring that our families are fed and have access to medical care, and making our commutes to work safer and cheaper.”
“For too long, working families, small businesses, and local communities have carried the burden while some of the largest corporations in the world have exploited loopholes and avoided contributing their fair share to the Commonwealth that helps make their profits possible,” said Senator Muth. “It is time that Harrisburg and the elected leaders here in the State Capitol building start putting the people of Pennsylvania and our health and safety first – not the profits and bottom-lines of multi-national corporations and billionaire tech bros.”
“Our Commonwealth ranks among the most unequal states in the nation, and our tax system asks more of working people than it does of the wealthy corporations and billionaires who profit off our labor,” said Senator Saval. “We see these consequences of this rigged tax system in the checkout line at the grocery store, in crumbling roads and delayed trains, and in overcrowded classrooms and emergency room lines. By updating our tax code to include the vast empire of digital advertising, Pennsylvania can generate hundreds of millions of dollars in revenue—funds that can go toward the crucial infrastructure and services that Pennsylvanians need and deserve.”
HB 1678 and SB 1199 amend the Pennsylvania tax code by extending our existing gross receipts tax – a 5% tax already paid by telecommunications and other industries – to revenue from digital advertising platforms that sell ad space on websites and ads. Digital ads subject to this tax would include banners, search engine result pages, and full-screen interstitial ads. The vast majority of the tax would be paid by the wealthiest Big Tech corporations, including Google, Meta, Amazon, TikTok, and Microsoft. The bill targets large-scale digital advertising platforms — not small businesses, local advertisers, or Pennsylvania consumers buying goods or services online.
Analysis estimates that this legislation could raise up to $624 million in 2027 alone, making it one of the largest and most viable potential new revenue streams in Pennsylvania’s current legislative agenda.
The Digital Ad Tax is part of the larger Tax Billionaires, Fund PA package, which also includes closing corporate tax loopholes and taxing billionaires’ unearned income. This package is supported by the PAYBAC (Pennsylvanians for Accountability from Yass, Billionaires and Corporations) Table, a coalition of state-wide organizations that lead the All Eyes on Yass and Tax Billionaires, Fund PA campaigns.
###