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Maryland recently enacted the nation’s first tax on digital advertising. The new tax, the Digital Advertising Gross Revenues Tax (the “Tax”), became law on February 12, 2021.
The Tax has been surrounded by controversy from the very moment it was introduced in the Maryland House of Delegates. In fact, a lawsuit to prevent the Comptroller of the Treasury of Maryland from enforcing the Tax was recently filed by a group of affected taxpayers.
Background
Maryland House Bill 732 (2020) (“HB 732”) was first introduced in the Maryland House of Delegates in January 2020. It passed both houses on March 15, 2020. Maryland Governor Larry Hogan, a Republican, vetoed the bill in May 2020, citing the global pandemic, among other reasons, as his rationale for the veto. Governor Hogan’s veto, however, occurred after the close of the 2020 legislative session. Consequently, the Tax appeared dormant, awaiting what appeared to b
Employees and companies face interstate taxes during COVID
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