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Maryland Governor Vetoes Digital Sales Tax Bill

May 7, 2020, 7:40 PM

Maryland Gov. Larry Hogan (R) on Thursday vetoed a measure that would levy a 6% tax on sales of digital goods, saying it would raise taxes at an already challenging time.

  • The bill (H.B. 932) cleared the Maryland State Legislature earlier this year. Democrats could override the veto at a future date because they have a veto-proof majority in the legislature.
  • Hogan’s said in a letter to the president of the state Senate and the House of Delegates that “with our state in the midst of a global pandemic and economic crash, and just beginning on our road to recovery, it would be unconscionable to raise taxes and fees now.”
  • The bill would have expanded Maryland’s definition of the state’s sales tax to include electronically transferable goods and services such as e-books, music videos, and online newspapers — joining more than 20 states that already impose a digital tax.

—With assistance from Sam McQuillan.

To contact the reporter on this story: Kaustuv Basu in Washington at kbasu@bloombergtax.com

To contact the editors responsible for this story: Patrick Ambrosio at pambrosio@bloombergtax.com; Colleen Murphy at cmurphy@bloombergtax.com

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