Maryland’s Defense of Tax Pass-Through Drubbed by Federal Judges

“That’s gibberish,” said a Fourth Circuit judge at oral arguments Tuesday about Maryland’s defense of a provision of its embattled digital advertising tax that seeks to ensure taxpayers, not their customers, take responsibility for the levy.

The US Chamber of Commerce and two tech trade groups want the US Court of Appeals for the Fourth Circuit to throw out a trial court ruling that the provision has a “plainly legitimate sweep” that beats out any free speech concerns.

All three judges on the panel pressed Maryland Assistant Attorney General Ryan Dietrich on what possible interest the state has in the ...