Big Tech Broadens Court Challenge to Maryland Digital Ad Tax

A coalition of business trade groups has expanded its legal challenge against Maryland’s first-in-the-nation tax on digital advertising, objecting to a new feature of the law barring tech companies from passing the tax on to consumers of advertising services.

Led by the U.S. Chamber of Commerce, the coalition filed an amended complaint that calls on a federal judge to issue an injunction barring enforcement of the state’s Digital Advertising Gross Revenues Tax. The complaint expands on its original claims, targeting the so-called “pass-through prohibition” added to Maryland’s law earlier this year under S.B. 787.

The pass-through law, scheduled to ...