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Maryland Digital Ad Tax Case Leaves States in Limbo, But Digital Taxes Aren t Going Away

Maryland Digital Ad Tax Case Leaves States in Limbo, But Digital Taxes Aren t Going Away
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Law digest — Md Supreme Court — July 20, 2023 | Maryland Daily Record

Law digest — Md Supreme Court — July 20, 2023 | Maryland Daily Record
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Maryland Digital Advertising Tax Survives In Recent Supreme Court Decision | White and Williams LLP

On May 9, 2023, the Maryland Supreme Court issued an order that revived the state’s digital advertising tax, which was previously found to be unconstitutional by a Maryland circuit.

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Maryland s Digital Advertising Gross Revenues Tax Not Dead (Yet) | Insights

The Supreme Court of Maryland's remand of this case to the Circuit Court for Anne Arundel County with directions to dismiss will require companies whose services meet the broad definition of “digital advertising services” to take steps to determine whether they will be subject to the tax’s various filing requirements.

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Application of Maryland s Digital Ad Tax

The Digital Ad Tax may apply to a broad swath of businesses, including companies located outside Maryland. Digital advertisers must determine if their 2023 digital advertising service receipts in Maryland will exceed $1 million. if so, file a return to mitigate penalties.

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