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Circuit Court Judge Rejects Maryland Tax on Digital Ads

Just hours ago, a Maryland judge threw out the state’s first-in- the-nation digital advertising tax.

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Saying the law violates the federal Internet Tax Freedom Act and the U.S. Constitution, Anne Arundel County Circuit Judge Alison Asti granted summary judgment from the bench in favor of Verizon and Comcast subsidiaries that sought to invalidate the tax, saying it violated ITFA, the dormant commerce clause of the Constitution and the First Amendment. Judge Asti said the law clearly targets out-of-state companies.

The Association has been closely monitoring this issue since inception due to the potential increase in digital ad costs that this may have – specifically for Maryland companies. We will continue to monitor and update.

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