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Advertising Digital Advertising Tax

McDermott Will & Schulte

Washington’s advertising services tax: Sourcing rules clear as mud

Washington’s sales tax on advertising services takes effect October 1, 2025, and comes in two forms: a tax on digital automated services and a tax on retail sales of advertising services. Both impositions apply to digital...more

Blank Rome LLP

Maryland’s Digital Advertising Tax Survives First Amendment Challenge (For Now)

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On July 3, 2024, the U.S. District Court for the District of Maryland dismissed a First Amendment challenge to Maryland’s Digital Advertising Gross Revenues Tax (the “Tax”) holding that while a provision in the Tax scheme...more

Morgan Lewis

California Digital Advertising Tax Bill Progresses to Assembly Committee on Revenue and Taxation

Morgan Lewis on

The Digital Advertising Services Tax Law passed the California Assembly Committee on Privacy and Consumer Protection with a 6-3 vote on April 23 and is now pending before the California Assembly Committee on Revenue and...more

McDermott Will & Schulte

Following Maryland’s Lead? We Guess Everyone Wants to Go to Court. Icy Challenges to Nebraska’s Advertising Services Tax Act Start...

Nebraska Governor Jim Pillen’s ambitious plan to provide $2 billion in property tax relief via an increase in the sales tax rate and an expansion of the sales tax base is stirring significant debate. Part of his proposal is...more

White and Williams LLP

Maryland Digital Advertising Tax Survives In Recent Supreme Court Decision

White and Williams LLP on

On May 9, 2023, the Maryland Supreme Court issued an order that revived the state’s digital advertising tax, which was previously found to be unconstitutional by a Maryland circuit court. The Supreme Court’s decision did not...more

Akerman LLP - SALT Insights

Maryland’s High Court Hands the State a Big Win in its Digital Ad Tax Dispute, More Challenges to Follow

Last fall, when a Maryland County Circuit Court held that the Maryland Digital Ad Tax violated the dormant commerce clause, the supremacy clause, the Internet Tax Freedom Act, and the First Amendment of the U.S. Constitution,...more

Skadden, Arps, Slate, Meagher & Flom LLP

Taxpayers (and States) Take Notice: Invalidation of the Maryland Digital Advertising Tax Highlights the Importance of the Internet...

A Maryland state court invalidated the state’s first-in-the-nation tax on digital advertising (Maryland Digital Advertising Tax) earlier this week. Enacted in February 2021, the Maryland Digital Advertising Tax was...more

Akerman LLP - SALT Insights

What’s Next For Maryland’s Digital Advertising Tax?

Maryland’s controversial Digital Advertising Gross Revenues Tax (the “Digital Ad Tax”) recently shot back to the top of the headlines when Maryland Circuit Court Judge, Alison Asti, ruled from the bench that the tax is...more

Pillsbury - SeeSalt Blog

Maryland Court Invalidates Maryland’s First-of-Its-Kind Digital Ad Tax

Pillsbury - SeeSalt Blog on

A Maryland state court struck down the state’s Digital Advertising Gross Revenues Tax (“Digital Ad Tax”) as invalid under both the federal Internet Tax Freedom Act (“ITFA”) and U.S. Constitution....more

McDermott Will & Schulte

Maryland Attorney General’s Office Says Taxpayers May Inform Customers of Increased Charges Resulting from Digital Advertising Tax

In a brief filed on April 29, 2022, the Maryland Attorney General’s Office (Attorney General) agreed that the “pass-through prohibition” of the state’s digital advertising tax “does not purport to impose any restriction on...more

McDermott Will & Schulte

Maryland Comptroller Adopts Digital Advertising Gross Revenues Tax Regulations

On December 3, 2021, the Maryland Comptroller published notice of its adoption of the digital advertising gross revenues tax regulations (which was originally proposed on October 8, 2021). Per the Maryland Administrative...more

BakerHostetler

[Podcast] You Can Say That, But It Will Cost You - The 1st Amendment and State Taxation

BakerHostetler on

Maryland and Ohio courts disagree on whether taxing billboards violates the 1st amendment. Will the Supreme Court weigh in? How will this affect the surge of interest in targeted taxes on digital advertising? Matt Hunsaker...more

Miller Nash LLP

When Worlds Collide: How Tangible Tax Burdens Attach to Digital Commerce in the United States (Part 2)

Miller Nash LLP on

Part 1 of this series discussed the proposals adopted by various countries to impose taxes on the digital economy, particularly by taxing various types of digital advertising and other digital services. These taxes allow...more

BakerHostetler

[Podcast] Statues, Texas Apportionment (Sirius XM), and Maryland Digital Ad Tax Regs

BakerHostetler on

Matt Hunsaker breaks down the latest state tax news including a discussion of tax arguments in a controversial civil war era statue removal case, the Texas Supreme Court's decision to hear Sirius XM's apportionment case, and...more

BakerHostetler

[Podcast] More Musings on Digital Advertising Taxes

BakerHostetler on

Massachusetts has proposed a digital advertising tax. Matt Hunsaker breaks down the new proposal (and an old proposal to conduct a study before enacting a tax) and compares and contrasts it with Maryland's infamous digital...more

Fox Rothschild LLP

ICYMI: Maryland’s Digital Advertising Tax

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In case you missed it, Maryland became the first state back in February to pass a digital advertising services tax into law (and over the governor’s veto no less). The law, titled Digital Advertising Gross Revenues Tax, is...more

Foster Garvey PC

Maryland Takes a Beat on Its New Digital Advertising Tax

Foster Garvey PC on

Last week, we reported on Maryland’s new gross receipts tax on revenues derived from digital advertising services (the “Tax”), the first of its kind in the nation. Affected taxpayers and tax practitioners alike can breathe a...more

Pillsbury - SeeSalt Blog

Maryland Court of Appeals Rejects First Amendment Challenge to Local Tax on Outdoor Advertising Services

On February 15, 2021, the Maryland Court of Appeals issued a decision in Clear Channel Outdoor, Inc. v. Director, Department of Finance of Baltimore City, Case No. 24-C-18-001778 (Md. 2021), upholding the constitutionality of...more

Foster Garvey PC

Maryland’s New Tax – The Nation's First State Tax on Digital Advertising

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Maryland recently enacted the nation’s first tax on digital advertising. The new tax, the Digital Advertising Gross Revenues Tax (the “Tax”), became law on February 12, 2021. The Tax has been surrounded by controversy from...more

Morgan Lewis - Tech & Sourcing

Maryland Is First State to Enact Digital Advertising Tax

Maryland enacted a state tax on digital advertising gross revenues on February 12, after overriding the governor’s veto. The passed law, which is the first of its kind in the United States, imposes “a tax on certain annual...more

BakerHostetler

New Taxes on the Digital Economy: A Closer Look at the New York Data Tax Proposal

BakerHostetler on

Over the last year, state and local governments have proposed a variety of novel taxes on the digital economy, including taxes on digital advertising and social media platforms. Two factors have motivated these proposals: (1)...more

Sheppard Mullin Richter & Hampton LLP

Maryland Breaks Ground with Digital Advertising Tax

Overriding the governor’s veto of H.B. 732 (2020), the Maryland Senate on February 12, 2021 passed the nation’s first state tax on the digital advertising revenues pulled in by large companies. This development follows...more

Mintz - ML Strategies

Is Massachusetts Poised to Pass a Tax on Digital Advertising?

Mintz - ML Strategies on

Only a handful of states have sought to tax digital advertising, and the path forward is murky at best due to practical considerations, federal preemption and constitutional questions. However, there are at least 4 bills...more

McDermott Will & Schulte

Maryland Digital Advertising Services Tax—Implementation Delay Likely

On the morning of Friday, February 26, 2021, the Maryland Senate Budget and Taxation Committee added a new item to its agenda for the hearing later that morning. The new item was proposed amendments to Senate Bill 787, a bill...more

Morgan Lewis

Maryland Passes Digital Advertising Tax, Now Being Challenged in Court

Morgan Lewis on

The Maryland state legislature voted on February 12 to override Governor Larry Hogan’s veto and thus enacted the Digital Advertising Act, the first tax of its kind in the United States. Other states such as Indiana, New York,...more

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