Action Alert: Stop New Taxes on Maryland’s Job Creators

At the end of the 2020 Maryland legislative session, the General Assembly passed a bill that would create a gross receipts tax on revenues derived from digital advertising services in Maryland. The outcome was legislation that will increase costs for every single person and business that advertises services online—from the smallest mom-and-pop to the largest corporation. Governor Hogan promptly vetoed the bill.

Today, businesses of all sizes are marketing online. Access to online platforms is direct and easy to manage, and the digital advertising ecosystem benefits entities of every type across the entire spectrum of Maryland’s economy.

If the General Assembly overrides the governor’s veto of HB 732 when it returns to Annapolis in January, the result will be increased costs for Maryland’s job creators when they are hurting the most as a result of the COVID-19 pandemic. The economic burden of this legislation will ultimately be borne by Maryland businesses that utilize online platforms to advertise their services and reach new customers. What is more, if the veto is overridden, Maryland would also have the notorious distinction of being the only state in the country to enact an online advertising tax.

A coalition of independent businesses and individuals has formed to ensure that taxes implemented by the Maryland General Assembly do not place an unnecessary and undue burden on the state’s entrepreneurs and job creators.