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Maryland Court Holds Digital Advertising Tax is Unconstitutional

20 October 2022

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Approved Changes

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United States

On 17 October 2022, Judge Alison Asti of the Circuit Court for Anne Arundel County in the U.S. state of Maryland ruled that the state's digital advertising tax is unconstitutional. The digital advertising tax, the first of its kind introduced by any State in the U.S., was first approved by the General Assembly (legislature) in 2021, including progressive tax rates of up to 10% on gross revenues of a person derived from digital advertising services in Maryland. The law that introduced the tax was challenged in state court by Verizon and Comcast. In her ruling, Judge Asti found that the...