Part of MD Digital Ad Tax Law Struck Down

Judge Strikes Down Part of MD Digital Ad Tax Law

A federal judge struck down a provision of Maryland’s first-in-the-nation digital advertising tax law that prohibited online companies from notifying consumers about the tax via a fee, surcharge or line item on their bills. The judge said that provision “facially violates the First Amendment.” The state does not intend to appeal the ruling.

A separate challenge to the tax itself from big tech companies including Apple and Meta remains pending in Maryland Tax Court. The tax has generated nearly $419 million for the state since it went into effect in 2022. (MARYLAND MATTERS)

—Compiled by SNCJ Managing Editor KOREY CLARK

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