A proposed tax on digital advertising revenues in Maryland could run into significant legal barriers.
The measure targets the revenue of large companies that profit from showing online advertising to users in Maryland. The tax rate would range from 2.5% to 10%, depending on companies’ annual gross revenue.
Because the proposal targets online advertising, tax specialists expect legal challenges arguing that it would violate the free speech guarantee of the First Amendment, as well as a 2016 federal law prohibiting discriminatory taxes on digital commerce.
The bill, introduced Jan. 8, is sponsored by Maryland Senate President Bill Ferguson ...
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