Digital automated service - advertising services

From the 2024 DOR Tax Exemption Study

82.04.192(3)(b)(xiii) - Digital automated service - advertising services Description Digital automated service are retail sales. However, the definition of digital automated services excludes advertising services. Advertising services means: - All services directly related to the creation, preparation, production, or the dissemination of advertisements. - Advertising services include layout, art direction, graphic design, mechanical preparation, production supervision, placement, and rendering advice to a client concerning the best methods of advertising that client's products or services. - Advertising services also include online referrals, search engine marketing and lead generation optimization, web campaign planning, the acquisition of advertising space in the internet media, and the monitoring and evaluation of web site traffic for purposes of determining the effectiveness of an advertising campaign. - Advertising services do not include web hosting services and domain name registration. As a result, advertising services, as described above are not subject to sales tax. Purpose To decrease costs for advertising services. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 20