Maryland’s Digital Advertising Tax Faces Legal Setback as Court Declares It Unconstitutional
An appellate court in Maryland recently invalidated a segment of the state’s digital advertising tax, marking a significant shift in the regulation of online advertising revenue. The court’s decision arose from a legal challenge that claimed the tax disproportionately affected companies involved in digital advertising compared to traditional businesses. The law, enacted in 2021, imposed a tax on gross revenues generated by certain advertising services, which critics argued was unfairly burdensome on digital platforms. Plaintiffs, which included national advertisers and technology firms, contended that the tax violated constitutional provisions by imposing an undue economic burden … Read more