When Maryland’s legislature made the decision last month to override Gov. Larry Hogan’s veto of its digital advertising tax, it was clear that the legislature had pushed the state into legally dubious territory. And sure enough, the state is already facing legal challenges from tech industry trade groups and the U.S. Chamber of Commerce. The state’s new system will impose a gross receipts tax ranging from 2.5% to 10% on businesses with global revenues exceeding $100 million, so long as they have at least $1 million in advertising revenue within Maryland.
Wilford: Maryland’s digital ad tax not only bad policy, it’s fraught with legal problems
March 10, 2021