Government Report - January 2026
January 2026 Report
Advertising policy continues to evolve quickly across the country. In 2025 alone, at least 43 states considered legislation involving privacy, data security, digital advertising or broader advertising taxes. AAF responded with more than 60 comments to legislators and regulators, advocating for the interests of the advertising industry and the professionals and businesses it represents.
2025 Recap
AAF Government Affairs had a busy 2025. At least 43 states considered some type of privacy/data security or digital or broader ad tax legislation. Many of the privacy proposals were omnibus bills, others were more narrowly focused, such as on children or health issues. Ultimately, 13 states passed some form of privacy bill, and the state of Washington passed a digital ad tax, which is being challenged. Throughout the year, AAF filed more than 60 comments with legislators and regulators offering our views.
We anticipate 2026, will be equally active and look forward to working with our industry partners and local chapters to advocate on behalf of the advertising industry.
California Social Media Ad Tax
January 12, the California Assembly Committee on Revenue and Taxation conducted a hearing concerning AB 796 which would enact an advertising tax for social media platforms. The measure was the subject of a springtime hearing in the Committee on Privacy and Consumer Protection. Following the hearing, the sponsor requested it be a two year bill, adding it to the 2026 agenda of Revenue and Taxation.
AAF, joined by many of our local chapters (AAF Desert Ad Fed, AAF Fresno, AAF Inland Empire, AAF Orange County, AAF Sacramento, AAF SF Bay Area, AAF Silicon Valley, AAF Western Region, and AAF Baltimore) and other industry allies, sent our letter to the Committee opposing the tax. In addition, AAF EVP Government Affairs Clark Rector was on an episode of the CaliBiz podcast to explain our opposition to the tax.
At the end of the hearing the bill was placed on the suspense file, which Californian insiders say effectively kills it for the session.
Tucson Ad Tax Update
In December, the ad tax under consideration by the Tucson City Council appears to have been rejected. AAF Tucson President Adrienne Robertson reports:
This process has been fast-moving and highly collaborative. I am pleased to share that the proposed Ad Tax in Tucson has been tabled by the Mayor and City Council until further notice following their study session.
AAF Tucson mobilized quickly and effectively in opposition to the proposed ad tax. We met with the Mayor’s Chief of Staff, Charlene Mendoza, to formally present our concerns regarding the proposal that was scheduled for discussion at the next day’s council meeting.
A key point raised during the discussion was Arizona Proposition 126, the Prohibit New or Increased Taxes on Services Initiative, which was approved by voters in 2018 with a 64% “Yes” vote. This measure explicitly prohibits new or increased taxes on services.
Two former AAF Tucson Presidents, Ed Ackerley and Dave Slavin, participated in the meeting and provided valuable historical context on the ad tax, along with substantive insights into why the proposal would be problematic for our industry and the local business community.
In parallel with these efforts, we coordinated outreach with local chambers of commerce, encouraged impacted advertisers to submit formal letters, and engaged local media and advertising outlets to voice their concerns. This collective advocacy played a significant role in having the item removed from the agenda.
Although many of us were prepared to attend the council meeting, the proposal was officially tabled during the study session and will not be discussed at this time. Notably, one council member commented that the ad tax proposal was overly complex.
This outcome reflects a strong, unified effort by our community, and we will continue to monitor developments closely.
Congratulations to everyone at AAF Tucson for a successful outcome and demonstrating once again the power of AAF’s grassroots.
New Jersey Tax Proposed
Legislation to tax “commercial data collectors” has been introduced in New Jersey. The bill was referred to the Senate Budget and Appropriations Committee. While no hearing has been scheduled, its sponsor is Senate President Nicholas Scutari (D), so must it be considered a serious threat. AAF has written to Committee members to express our opposition to the tax.
New York Governor Signs “Synthetic Performers” Bill
New York Governor Kathy Hochel has signed into law a measure requiring all advertisements to disclose the use of “synthetic performers.” When the bill was still in the legislature AAF alerted our New York members about the bill and wrote to legislative leaders expressing our concerns. We also wrote to the Governor urging a veto while also suggesting amendments that would address our concerns about the law.
The AAF protects and promotes advertising at all levels of government through grassroots activities. Our nation-wide network monitors advertising-related legislation on local, state and federal levels. We put our members face-to-face with influential lawmakers while encouraging self-regulation as a preemptor to government intervention, when appropriate of course. To learn more about our advocacy efforts, click here.
