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On February 12, 2021, the General Assembly of the State of
Maryland enacted legislation imposing the Digital Advertising Gross
Revenues Tax (the Act ), overriding a prior veto of the
legislation by Maryland Governor Larry Hogan. The Act imposes
a tax, at rates of up to 10%, on gross revenues derived from
digital advertising services in the state. The tax
could be extremely burdensome, and within days of the Act s
enactment, a number of advertising industry groups commenced
litigation, in an effort to block implementation of the Act.
When the Maryland General Assembly overrode a gubernatorial veto on Friday, February 12, 2021, it became the first state in the U.S. to place a tax on digital advertising services
Only a handful of states have sought to tax digital advertising, and the path forward is murky at best due to practical considerations, federal preemption and constitutional questions.
The Federal Trade Commission announced that it reached a settlement with promotional products company Gennex Media, resolving allegations that the company made false, misleading.