What’s Next Following Enactment of Maryland’s Advertising Tax?

What’s Next Following Enactment of Maryland’s Advertising Tax?

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.

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