Maryland Supreme Court To Take Up Novel “Digital Advertising Tax”

The State’s Highest court will consider the constitutionality of a recently enacted State tax on digital advertising, to assess interstate commerce issues in its implementation.

The Maryland Supreme Court (recently renamed, formerly the Court of Appeals) will hear arguments in litigation over Maryland’s Digital Advertising tax in May. The appeal by the Comptroller, would exhaust the State-level remedy sought by companies subject to the tax, who claim its application unduly infringes on interstate commerce.

From coverage on the WBAL website:

The law would have taxed revenue that the affected companies make on digital advertisements shown in Maryland. Attorneys for Big Tech companies like Facebook, Google and Amazon have contended the law unfairly targets the companies. It would impose a tax based on global annual gross revenues for companies that make more than $100 million globally.

See prior Conduit Street coverage from October, following the circuit court decision: Judge Strikes Down Maryland’s Digital Advertising Tax

Michael Sanderson

Executive Director Maryland Association of Counties