ANA Remains on Guard Against State Taxes

NEW YORK With fiscally strapped states looking to tax advertising to replenish depleted coffers, the Association of National Advertisers is trying to beat back any plan that impacts the industry.

In his address at the ANA’s Television Advertising Forum on Thursday, Dan Jaffe, evp for governmental relations at the association, criticized Connecticut Gov. John Rowland’s plans to tax media services at a rate of 3 percent of income.

“Rowland … has called the creative services tax a ‘nuisance’ and raised questions as to whether it is worth the collection costs,” Jaffe said, noting that the original proposal called for 6 percent tax rate. “We are working hard with our in-state lobbyist to try to repeal even this small tax.”

In his remarks, Jaffe pointed to a study commissioned by the ANA that shows in “every congressional district in the United States, advertising generates between 12 to 16 percent of private sector revenues.” He said singling out advertising for an onerous tax would do more harm than good.

“Since 1987, we have defeated more than 100 broad ad tax proposals in over 40 states,” Jaffe said. “To keep up this record, we need to continue to be constantly vigilant, particularly during this very difficult economic period.”