Washington – A federal judge in Maryland heard oral arguments today in a case challenging the constitutionality of Maryland’s digital tax, which the legislature passed last year. The “Digital Advertising Gross Revenues Tax” aimed at some digital advertising platforms attempts to collect up to ten percent of global revenues from a small number of out-of-state companies in the first year.
The Computer & Communications Industry Association and a coalition of trade associations joined in filing a federal complaint challenging the legality of such a measure.
The following can be attributed to CCIA President Matt Schruers:
“While it is not unlawful to raise taxes, punitively targeting out-of-state businesses is. As states look for ways to raise revenue, the Legislature has set up Maryland’s budget for problems by enacting such a legally questionable measure.
“Digital advertising is a cost-effective way for small businesses to reach new customers, particularly valuable during the public health crisis. Taking aim at digital services widely used by consumers and small businesses alike is a losing proposition for Marylanders.”
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