Connecticut Looks to Repeal Ad Tax

WASHINGTON, D.C. Connecticut’s new state budget passed by the Senate on Thursday contains language that will repeal a 3 percent ad tax on creative services.

Connecticut imposed the tax on April 1 on advertising, public relations services and direct mail to fill a nearly $900 million budget deficit. The American Association of Advertising Agencies and the Association of National Advertisers hired a lobbyist in March to fight for a repeal.

The repeal will become effective if Gov. John Rowland signs the budget, as he is expected to do in the next two weeks.