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Tax Law

Legal Alert: Maryland hearing on Digital Advertising Tax highlights problems, hints at amendments

On February 28, 2020, Maryland’s proposed Digital Advertising Tax was the subject of a hearing by the Maryland House of Delegates’ Ways and Means Committee. House Bill 695 would impose a tax on Maryland gross revenues from digital advertising services at a rate of up to a 10%. An archived video of the hearing is available here.

After introductions by the bill’s sponsor – Delegate Washington – the Ways and Means Committee heard testimony from numerous witnesses, both supporting and opposing the bill. Delegate Washington noted that he had amendments to the bill that have not been introduced or described in any detail, although there was commentary that the amendments would address the bill’s sourcing provision and potential Internet Tax Freedom Act violations.

Read the full legal alert here.