Utah’s new 4.7% tax on targeted advertising revenue will likely draw legal challenges arguing it discriminates against online commerce, as a court decision nears on a lawsuit opposing a similar tax in Maryland.
The Utah tax, passed by the Republican-controlled legislature and signed into law last week by Gov. Spencer Cox (R), could become the latest legal test of the federal Internet Tax Freedom Act, which prevents states from taxing digital versions of products if they don’t tax the tangible equivalents.
“There’s going to be a challenge, and the challenge will be successful,” said Jeffrey Friedman, a partner with Eversheds ...
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