Maryland circuit court judge has struck down Maryland’s first-in-the-nation digital advertising tax Digital Ad Tax. On Oct. 17, 2021 judge held law violates the federal Internet Tax Freedom Act ITFA, the Commerce Clause of the U.S. Constitution, and the First Amendment.
The legal challenge to Maryland’s new tax on digital advertising has been dealt a setback after a federal judge in Baltimore ruled that federal law prevents the case from moving
Maryland s tax on digital ads could reshape internet â if it survives legal challenges
Associated Press
and last updated 2021-03-05 14:16:05-05
The nationâs first tax on digital ads, targeted at big tech companies, is slated to go into effect next week â but a lawsuit filed by a group of businesses and the U.S. Chamber of Commerce hopes to stop their implementation.
The Digital Advertising Gross Revenues Tax imposes a tax on money generated from selling digital advertising in Maryland.
Major tech companies and industry groups argue it violates the 1998 âInternet Freedom Tax Actâ â a law that prohibits discriminatory taxes on e-commerce.