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May

21

The Impact of Sales Taxation of the Advertising Industries of Wisconsin

Posted on May 21, 2009

Wisconsin’s economy over the past decade has appeared successful and healthy, but the state government has worked against a structural budget deficit and now faces a multibillion dollar shortfall. As in other states, policymakers and citizens have considered a variety of alternatives to bring expenditures and revenues into balance. This report warns against adoption of a damaging policy direction that has been discussed in some quarters: the extension of the sales tax to include greater coverage of advertising services

Read:  Report for the Wisconsin Advertising Industries Coalition

May

19

How Service Taxes Impact Different Sectors of Advertising

Posted on May 19, 2009

Source: American Advertising Federation – Madison Chapter

The call for an ad tax always raises the issue of how to define advertising. Newspapers, magazines, television, direct mail and outdoor usually come the minds of legislators. However, baseball caps, t-shirts, matchbook covers, blimps and sponsored sporting events are forms of advertising subject to tax. The Federal Trade Commission has never been able to define advertising and Florida failed in 1987. How will other states define advertising?

Three states have imposed an ad tax (Arizona, Iowa, Florida) and each repealed it. The economic dislocation resulting from the application of sales and use tax to the service of advertising was quickly demonstrated in 1987 when over 200 new auditors hired by Florida could not administer the sales tax placed on a wide range of services, including advertising. Read more »

May

15

Taxation of Architectural Services

Posted on May 15, 2009

Source: Wisconsin Society of Architects

The AIA believes taxing architectural services would significantly hurt the design industry by encouraging clients to turn to unlicensed designers for services, seriously eroding protection of the public’s health and safety. Taxing architectural services would put the architectural profession at a competitive disadvantage with unlicensed individuals and would hurt small businesses most. The AIA believes taxing architectural services would have an adverse impact on the state’s revenue, economy, and public welfare and health.

Read: AIA Sales Tax Issue Brief