digital advertising tax Archives

Maryland State Judge Strikes Down Digital Ad Tax

October 19, 2022 By Maria Eberle, Ted Bots, Lindsay LaCava, Stephen Long, Mark Yopp, Dmitrii Gabrielov and David Simon-Fajardo 2 Mins Read

On October 17, 2022, a Maryland state judge in the Circuit Court of Anne Arundel County struck down the state’s Digital Advertising Tax (“Digital Ad Tax”) as violating the Internet Tax Freedom Act (“ITFA”) and the Commerce Clause and First Amendment of the U.S. Constitution. Comcast of California/Maryland/Pennsylvania/Virginia/West Virginia LLC, et al. v. Comptroller of the Treasury of Maryland, Case No. C-02-CV-21-000509 (Md. Cir. Ct. Anne Arundel Cnty.). The judge issued her ruling from the…

Federal Judge Rules That Challenge to Maryland Digital Advertising Tax Cannot Proceed In Federal Court, But Challenge to Pass-Through Prohibition Can Proceed

March 8, 2022 By Maria Eberle, Ted Bots, Mark Yopp, Dmitrii Gabrielov and Ronald Beach 4 Mins Read

On March 4, 2022, a federal judge ruled that the federal Tax Injunction Act (“TIA”) bars a challenge to Maryland’s Digital Advertising Gross Revenues Tax (“Digital Ad Tax”) from proceeding in federal district court, but does not bar the plaintiffs from challenging Maryland’s prohibition on passing the tax to a customer “by means of a separate fee, surcharge, or line-item” (the “Pass-Through Prohibition”). Chamber of Commerce of the United States of America v. Franchot, No.…

Connecticut’s Digital Advertising Tax Continues to Move Forward

June 2, 2021 By Maria Eberle, Lindsay LaCava, Mark Yopp and Dmitrii Gabrielov 3 Mins Read

Connecticut legislative leaders recently announced support for a digital advertising tax (“Connecticut Digital Advertising Tax”) proposed by the Connecticut Joint Committee on Finance, Revenue and Bonding (the “Finance Committee”). Connecticut joins Maryland, Massachusetts, New York, and Texas, among others, as states with concrete digital advertising tax proposals on the table (and in Maryland’s case, an enacted law).

New York State Budget Enacts Several Tax Increases

April 13, 2021 By Maria Eberle, Lindsay LaCava, Dmitrii Gabrielov, Michael Tedesco and Joshua Lin 10 Mins Read

On April 7, 2021, the New York Legislature passed the New York Budget Bill for fiscal year 2022 (S2509–C/A3009-C) (the “Enacted Budget”), ushering in a slew of tax increases for businesses and high-income earners. As of the time of publication of this post, New York Governor Andrew Cuomo had not yet signed the Enacted Budget, but has indicated that he will do so. The Enacted Budget is the result of a months-long negotiation process that…