From: The Baltimore Banner
“This suit is just one more proof point that Maryland has bitten off way more than it can chew with this short sighted and illegal tax,’ said Doug Mayer, president of Americans for Digital Opportunity.”
The Baltimore Banner
Pamela Wood
November 15, 2023
“Technology giant Apple is challenging Maryland’s tax on digital advertising in a lesser-known state tax court after previous legal challenges brought by other businesses failed. …
“Apple was the first to file an appeal to the Maryland Tax Court, and a hearing is set for Friday. But several other companies have followed with their own appeals in recent days: Google, Amazon Advertising, A9.com (a subsidiary of Amazon), Meta Platforms (parent company of Facebook and Instagram), Yahoo, Twitch, Snap, Microsoft Online, ABC, Peacock TV, IMDB.com, Grubhub and Catalina Marketing.
“The tax, Apple argued in court filings, ‘singles out advertising services delivered over the Internet for taxation while advertising services delivered through other means are expressly excluded from taxation altogether.’
“In other words: Apple argues it’s unfair to be required to pay taxes on digital ads and not those in other sources, including newspapers, magazines or on radio stations. …
“Apple argues that the digital ad tax violates multiple federal laws as well as state and federal constitutional protections regarding commerce and due process. …
“This suit is just one more proof point that Maryland has bitten off way more than it can chew with this short sighted and illegal tax,’ said Doug Mayer, president of Americans for Digital Opportunity, which represents the interests of the advertising industry. While not a part of the case, the organization also opposes the tax.
“Digital advertising is utilized by businesses of all sizes and that is exactly who is paying for this now: Maryland businesses both small and large,’ Mayer said. ‘Someday soon this tax will be ruled unconstitutional, and the state will be forced to pay back every penny it took — hope they haven’t started spending it.’ …
“Maryland was believed to be the first state in the nation to create such a tax when lawmakers passed it in 2020. Then-Gov. Larry Hogan, a Republican, vetoed the tax that year, but the veto was overturned by lawmakers in 2021.
“Tech firms argued the tax was punitive and quickly challenged in court. That legal challenge failed, however, when the Supreme Court of Maryland ruled earlier this year that the companies hadn’t exhausted all of their administrative appeal options — including in Maryland Tax Court.” …