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Tech industry challenges Maryland online ad tax
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The U.S. Chamber of Commerce and an industry group backed by Amazon, Facebook and Google have sued Maryland over new its new online advertising tax aimed at funding education.
The legal complaint by the groups, including the Internet Association, was filed in a federal district court in Maryland after the state legislature passed the first-in-the-nation tax last week, overriding a veto by the governor.
They argue that the new tax on online ad revenue is unconstitutional and illegal under a federal internet tax moratorium.
As cash-starved states suffer declining tax revenues in the pandemic, many have begun to eye big tech as a potential source of revenue, after online companies boomed in the past year.