PA State GOP Proposes 6% tax on advertising

PENNSYLVANIA CONSIDERS 6% AD SALES TAX: In order to offset a reduction in property taxes, the PA State GOP has proposed removing the sales tax exemption for advertising, resulting in a "new" 6% tax on advertising.

In a last-minute bid to cut state property taxes, the Pennsylvania House of Representatives Dec. 20 voted to remove the sales tax exemption on a number of services including advertising, a move that would make all advertising in the state subject to a 6% sales tax.

I'm curious how this would be implemented for Internet based advertising. Would Google be required to add 6% to CPC/CPM payouts for sites registered with a PA address? Or would you need to know that a user was reading the site from PA and then tax that advertising-viewing transaction, regardless of the physical location of the site?

This might affect me as I currently host my sites on Pair networks, which is based in Pittsburgh, PA and use Google Adsense (I'm not sure why, it's barely earned enough in two years to pay for).

The ad tax was part of a package offered by Rep. Mario M. Scavello, a Republican, to remove various sales tax exemptions. The details about how it would apply are sketchy; the legislation itself refers to broadcast and newspaper advertising, but not cable, and does not address of how regional ads would be calculated.

Now, if it only applies to broadcast and newspaper advertising, well, on the one hand I'd be relieved, on the other hand: how stupid can they be? Tax industries that are getting absolutely nailed by alternate media?