Maryland’s Controversial Tax on Digital Advertising Explained

| 8 min

On February 12, 2021, the General Assembly of the State of Maryland enacted legislation imposing the Digital Advertising Gross Revenues Tax, overriding a prior veto of the legislation by Maryland Governor Larry Hogan. The Act imposes a tax, at rates of up to 10%, on gross revenues derived from digital advertising services in the state.” The tax could be extremely burdensome, and within days of the Act’s enactment, a number of advertising industry groups commenced litigation, in an effort to block implementation of the Act.

Tax partner Andrew Lee breaks down what you need to know about this first-of-its-kind tax on this episode of the Kelley Drye’s Legal Download.