Judge Alison Asti of Anne Arundel County Circuit Court declared the Digital Advertising Gross Revenues Tax to be unconstitutional. The law was challenged in federal court by the US Chamber of Commerce through a filed complaint by Comcast of California Maryland and Verizon Media Inc. Thus, the judge decided to set the law in a bench ruling.
Digital Ad Tax
Maryland is the first and only state that passed a law in February 2021 imposing a tax on digital advertising where it wants to tax the revenues of major communications and technology firms. It aims to tax the part of the economy that resides between the platform and the users by substituting gross revenues. The tax took effect on 1 January 2022.
The court favored plaintiffs challenging the tax based on the following: