Targeting the Techs: Maryland Becomes First State to Pass Digital Advertising Tax

Maryland recently enacted the nation’s first digital advertising tax, 2020 H.B. 732, which creates an entirely new gross revenues tax on digital advertising. The law, as enacted, could face significant challenges based on concerns that its provisions may be unconstitutional or violate the federal Internet Tax Freedom Act, and on assertions by tech companies that the law is punitive and also may be overly vague.

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