Ad Biz Readies Fight Against State Ad Taxes

New levies could scare off marketers, hurting local media outlets

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New taxes on advertising haven't yet been proposed in Congress, but that hasn't stopped financially strapped states from considering them. Governors John Kasich (R-Ohio) and Mark Dayton (D-Minn.) have both proposed new taxes on advertising and other business services as part of their 2014 budgets.

In both cases, the proposals call for reducing the sales tax, but increasing taxes on services. Kasich proposed a 5 percent tax and would only allow exemptions for services considered to be essential to modern life, such as healthcare.

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