Maryland is one step closer to enacting the nation’s first digital advertising tax. This afternoon, the Maryland House of Delegates voted 88-48 to override Governor Larry Hogan’s veto of House Bill 732, which would create an entirely new gross revenues tax on digital advertising services – display ads, search engine ads, mobile application ads, and ads within a piece of software.
The Maryland Senate may vote on whether to override Governor Hogan’s veto as early as tomorrow, February 12th. A three-fifths vote by the Senate (i.e., 60 percent or 29 members) is needed to override the veto and enact the digital advertising tax.