The D.C. Council recently proposed a 3% sales tax on businesses that buy advertising on TV, radio, print and digital outlets. No other state in the nation has this tax. On Thursday the DC Council approved an amendment that would remove that proposal.
City Council Chairman Phil Mendelson said he overestimated the effect his proposing this tax would have to discourage colleagues’ desire to raise other taxes. “At issue, fundamentally, is whether our Council will succumb to dubious demands to tax-and-spend.”
NAB CEO Gordon Smith thanked the DC Council for their change in direction. “This development is a major win for local media, advertisers, consumers and commerce. The outpouring of opposition expressed by local media companies and citizens in D.C. and across the nation effectively defeated the tax, which would have placed an undue burden on small businesses and local media already struggling amidst the pandemic. This should serve as an example for other local governments that such misguided taxes on advertising are counterproductive in stimulating local economies and will continue to be met with fervent opposition.”