Maryland judges question jurisdiction of digital ad tax case

today05/08/2023 32

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ANNAPOLIS, Md. (AP) — Attorneys have debated the proper jurisdiction for settling a legal challenge to the first-in-the-nation tax on digital advertising during arguments before Maryland’s highest court.

Meanwhile, an attorney for the state of Maryland appeared to surprise judges on the state’s Supreme Court when she said during Friday’s arguments that the state has already collected some taxes from companies that voluntarily submitted revenues to the state under the tax aimed at Big Tech.  Maryland State Comptroller Peter Franchot (pictured) is appealing the decision in a case brought by Verizon Media Inc. and Comcast.

A lower Maryland court ruled last year that the tax on digital advertising violates the federal Internet Tax Freedom Act, which prohibits discrimination against electronic commerce.

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