Delaware will soon have a new tax on ads that use video as a primary source of revenue, a move aimed at curbing what critics say is the misleading and misleading marketing tactics of some of the state’s most powerful corporations.
The Department of Revenue on Monday filed a rule that could make the state one of just a handful in the country to tax all video ads.
The state’s video advertising revenue would be taxed at a 10 percent rate on all advertisements.
The tax would be levied on the first and last minute purchases of any commercial, including on those that are paid for by video advertisements, or the first two days of a month.
It would also apply to ads that have no revenue-generating element but that are delivered to consumers through a video advertisement.
“This rule will be good for consumers, and it will save the state money in the long run,” said Gov.
“Delaware is a small state, but we need to ensure we are investing in our economic future,” he added.
A group of advertisers, consumer groups and companies, including Comcast Corp., Amazon.com Inc., Apple Inc., and Starbucks Corp., have lobbied for the tax to be implemented.
In its filing, the department cited research that found video advertising is generating about 2.7 percent of Delaware’s state revenue.
The group said that video ads account for about 12 percent of the ads served in Delaware.
Delaware’s video tax would apply to all video advertising that is paid for with any method other than cash, including through credit cards and debit cards.
The proposed tax would go into effect in the 2018-19 fiscal year.