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Digital Ad Tax Unconstitutional

October 28, 2022 / By Barbara Weltman

Maryland became the first state to enact a tax on internet advertising based on global annual gross revenues of the business; it went into effect at the start of the year. While the law was designed to tax multinational corporations, it could serve as a first step in taxing any business with digital advertising. The law was challenged as a violation to the Permanent Internet Tax Freedom Act and the U.S. Constitution as discriminating against interstate commerce. A federal court agrees that the law violates the act and the Constitution. Will Maryland appeal? #IdeaoftheDay

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