Groups challenge Maryland’s internet ad tax

Maryland

MARYLAND (WDVM) — A group of big tech companies have filed a federal lawsuit against Maryland.

Maryland broke barriers by becoming the first state in the country to create a law to tax digital advertising by Big Tech companies. And now those same companies are calling the law  “a punitive assault on digital advertising ” and say it violates the federal Internet Tax Freedom Act.

Maryland Senate President Bill Ferguson, who sponsored the legislation said this lawsuit did not come as a surprise.

“It’s pretty disappointing that multinational companies are spending what will likely be millions of dollars, instead of paying their fair share, will fight battles in court and pay lawyers fees,” said Ferguson. “I think it will be much more efficient and better for Marylanders if they contributed their fair share.”

Ferguson says everyone deserves their day in court and he has a great deal of confidence in Attorney General Frosh.

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