Judge rejects Maryland’s digital ad tax
Maryland’s first-in-the-nation tax on digital advertising has been struck down by a judge in Anne Arundel County on Monday.
Judge Alison Asti ruled from the bench in favor of Comcast et al., in the case against Maryland’s Office of the Comptroller.
The comptroller’s office said it is reviewing the decision and deciding on what will be its next steps.
The Democratic-controlled General Assembly approved the tax on internet advertising over the veto of Gov. Larry Hogan in 2021.
Democrats said that the purpose of the tax was to raise an estimated $250 million a year for spending on K-12 education. A similar challenge to the digital tax is underway in federal court.
Senate President Bill Ferguson said in a statement that the state’s children deserve “a world-class 21st-century education system” that is funded appropriately.
“As a case of first impression, we always knew this issue would face a legal journey,” said Ferguson. “But, the State of Maryland has already won in federal court on the exact same legal issues. We are confident that the Attorney General will prevail in state courts on appeal.”