A federal judge has sided with Maryland in a dispute over the state’s digital advertising tax, dismissing a claim filed by the U.S. Chamber of Commerce and three trade associations arguing that the tax violates First Amendment rights to free speech. The decision is the latest salvo in a lengthy legal dispute over the first-of-its-kind tax which was instituted in 2021. At the time, the General Assembly overrode a veto from then-Governor Hogan to impose the tax. Opponents have challenged the tax in both state and federal court. Last Wednesday’s ruling settles only the federal side of the claim, which was first filed in February 2021.
Our perspective: At least 13 companies have filed challenges in Maryland Tax Court, which remain pending. Maryland’s imposition of this tax only hinders our state’s attractiveness to businesses.
