A coalition of trade organizations filed a lawsuit Thursday against the Maryland state government over passage of a bill that imposes a tax on digital ad revenue.
The Computer & Communications Industry Association (CCIA), along with the U.S. Chamber of Commerce and the Internet Association, sued Maryland Comptroller Peter Franchot (D).
CCIA’s members include Amazon, eBay, Facebook, Google and Uber.
According to court documents, the trade organizations accused Maryland legislators of passing the bill in order to “penalize” large digital advertising companies, characterizing the new tax as “punitive.”
The bill imposes a tax of up to 10 percent on a company with global revenue from digital advertising that exceeds $15 billion, with smaller percentages for companies with less revenue.
“The Maryland state tax aimed narrowly at a few companies’ but broadly taxing global revenues is concerning both in scope and precedent. The Maryland legislation suffers from numerous constitutional infirmities and we expect it to be blocked on legal grounds,” CCIA President Matt Schruers said in a release.
“Policymakers looking to fill budget gaps with punitive measures of this nature are setting state budgets up for failure. Digital services make a critical contribution to local economies by providing tools to keep businesses functioning and people connected to school, work and family,” Schruers added.
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Maryland coalition sues state over nation's first online advertising tax https://t.co/Hu9m7yHx7x pic.twitter.com/7XYnlHYDcb
— The Hill (@thehill) February 18, 2021
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