Maryland seeks to reinstate digital ad tax

Maryland late last week appealed an agency ruling that struck down a 2021 law imposing taxes on digital ad sales.

The Maryland Tax Court, a state administrative agency, said in its ruling that the tax law is invalid for several reasons, including that it conflicts with the Internet Tax Freedom Act — a 1998 law that prohibits states from imposing a tax on digital services unless taxes are imposed on "similar" non-digital services.

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