Bloomberg Tax
Dec. 5, 2022, 4:59 PM

Big Tech Challenge to Maryland Ad Tax Now Only in State Court

Michael J. Bologna
Michael J. Bologna
Staff Correspondent

The federal judge overseeing the US Chamber of Commerce’s challenge to Maryland’s digital advertising tax dismissed the remaining issue in the case, finding the lawsuit was mooted by a state court ruling that found the tax to be unconstitutional.

Judge Lydia Kay Griggsby of the US District Court for the District of Maryland dismissed the Chamber’s objections to the so-called “pass-through prohibition” of the Digital Advertising Gross Revenues Tax, which restricts tech companies like Inc. and Facebook from passing the levy on to their customers. The prohibition, which the Chamber said violated companies’ First Amendment rights, was the ...