Washington — The Computer & Communications Industry Association and a coalition of trade associations joined in filing a federal complaint against Maryland’s recent Act imposing a “Digital Advertising Gross Revenues Tax”, aimed at technology companies. The Act attempts to collect an estimated $250 million from a small number of companies in the first year, according to various news reports, though it is expected to face challenges over the legality of the measure. The calculation is based on companies’ global revenues, and the rate is as high as 10 percent of those revenues.
The following can be attributed to CCIA President Matt Schruers:
“The Maryland state tax aimed narrowly at a few companies’ but broadly taxing global revenues is concerning both in scope and precedent. The Maryland legislation suffers from numerous constitutional infirmities and we expect it to be blocked on legal grounds.”
“Policymakers looking to fill budget gaps with punitive measures of this nature are setting state budgets up for failure. Digital services make a critical contribution to local economies by providing tools to keep businesses functioning and people connected to school, work and family.”