GOOD NEWS FOR DIGITAL ADVERTISING & SMALL BUSINESSES!
The nation’s first tax on digital advertising was struck down as unconstitutional by a Maryland judge on Monday October 17th, 2022.
The Maryland law’s fate in the courts is being closely watched by other states that have also weighed a similar tax for online ads.
The law would have taxed revenue that the affected companies make on digital advertisements shown in Maryland.
The tax rate would have been 2.5% for businesses making more than $100 million in global gross annual revenue; 5% for companies making $1 billion or more; 7.5% for companies making $5 billion or more and 10% for companies making $15 billion or more.
Republican lawmakers cheered the judge’s ruling on Monday as “a huge win for Maryland’s small businesses who rely on affordable digital advertising to market their services.”