NetChoice opposes Rhode Island’s proposed digital ad tax in HB 5076 as is unconstitutional, economically harmful and ultimately counterproductive. The tax violates the First Amendment by prohibiting companies from communicating specific information about the imposed tax burden to their customers. It also runs afoul of the Internet Tax Freedom Act by discriminating against digital commerce and risks multiple taxation across states. Furthermore, it violates the Commerce Clause by disproportionately burdening out-of-state businesses. Small businesses and consumers will bear the brunt of higher costs, limiting economic opportunity in Rhode Island.
Watch Zach Lilly’s testimony here, beginning at 00:53:28.