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Big Tech files lawsuit against Maryland digital ad tax

Big Tech files lawsuit against Maryland digital ad tax
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Question of the Day
By Emily Zantow
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The Washington Times
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Thursday, February 18, 2021
The U.S. Chamber of Commerce and lobbying groups for tech giants have filed a lawsuit against the state of Maryland over its newly enacted tax on digital advertising sales, according to a leading advertising official.
Dan Jaffe, executive president of government affairs for The Association of National Advertisers, said the lawsuit was brought against Maryland because its “digital advertising tax is exactly the kind of proposal the Internet Tax Freedom Act bans. [It] also raises serious First Amendment and due process issues.” ....

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Maryland Passed A Tax On Digital Advertising. What Happens Next?

Dan Jaffe, group EVP of government relations, Association of National Advertisers
It’s possible that this development will give further impetus to Montana, Connecticut, New York, Nebraska, Oregon and Indiana that also have similar taxes pending – and that would be highly unfortunate as the law clearly violates the Permanent Internet Tax Fairness Act that bars discriminatory taxes on digital media. It also almost certainly violates the Dormant Commerce Clause and therefore is unconstitutional.
This law will clearly fall heavily on businesses already struggling to survive due to the pandemic. This law also will force businesses and the state to expend substantial sums to fight this issue out in the courts. Those costs mean it will provide no benefit to the Maryland education system for which it was supposed to supply needed funding. ....

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Maryland Democrats to override Gov. Larry Hogan's veto on digital ad sales tax

The Democrat-controlled Maryland General Assembly is poised to override Republican Gov. Larry Hogan's veto of a bill that would impose a tax on digital advertising which would make it the first such legislation to become law in the nation. ....

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