Digital ad tax argued in Maryland federal court case

ANNAPOLIS, Md. (AP) — Attorneys in a federal court challenge to Maryland’s first-in-the-nation digital ad tax gave oral arguments about whether the law is a legitimate tax or an unconstitutional penalty targeting Big Tech.

Lawyers for the state of Maryland and an attorney representing Big Tech gave arguments in a virtual hearing Thursday before U.S. District Judge Lydia Griggsby. Lawyers representing the state say the law is a legitimate revenue-raising measure that was enacted to raise money for education.

But an attorney representing the plaintiffs says it clearly had a punitive intent and is narrowly tailored to affect companies like Facebook, Google and Amazon.

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