Home Conservative Maryland set for first digital ad tax in the country (Washington Examiner)

Maryland set for first digital ad tax in the country (Washington Examiner)

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Maryland set for first digital ad tax in the country – By Tyler Van Dyke (Washington Examiner) / Feb 12 2021

The first tax on digital ad revenue from Big Tech companies is headed for Maryland after the state Senate voted on Friday to override Gov. Larry Hogan’s veto.

That tax, which is projected to generate as much as $250 million in its first year, will fund the state’s education reform. The Senate voted 29-17, just making it past the two-thirds threshold necessary to override a veto.

The law will impose a 2.5% tax on ad revenues from companies that make between $100 million and $1 billion. Companies that make more than $15 billion, such as Google and Facebook, will pay a 10% tax on ads that are displayed inside the state.

Hogan and business groups argued that the tax will get passed down to small businesses that rely on Big Tech companies for advertising. The Tax Foundation said the tax was “unworkably vague” and illustrated “how lawmakers have failed to take the complexity of digital advertising into account in structuring the proposed tax.”

CONTINUE > https://www.washingtonexaminer.com/news/maryland-digital-ad-tax

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