On February 12, 2021, the General Assembly of the State of Maryland enacted legislation imposing the Digital Advertising Gross Revenues Tax, overriding a prior veto of the legislation by Maryland Governor Larry Hogan. The Act imposes a tax, at rates of up to 10%, on gross revenues “derived from digital advertising services in the state.” The tax could be extremely burdensome, and within days of the Act’s enactment, a number of advertising industry groups commenced litigation, in an effort to block implementation of the Act.
Our colleague Andrew Lee breaks down what you need to know about this first-of-its-kind tax here.
Subscribe to the Ad Law Access blog for more updates on advertising and consumer protection trends and developments from the Advertising Law and Privacy Law practices