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Barbara Weltman

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Digital Ad Tax Unconstitutional

October 28, 2022 / By Barbara Weltman

Maryland became the first state to enact a tax on internet advertising based on global annual gross revenues of the business; it went into effect at the start of the year. While the law was designed to tax multinational corporations, it could serve as a first step in taxing any business with digital advertising. The law was challenged as a violation to the Permanent Internet Tax Freedom Act and the U.S. Constitution as discriminating against interstate commerce. A federal court agrees that the law violates the act and the Constitution. Will Maryland appeal? #IdeaoftheDay

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Small business ideas, business tax news and small business consulting from Barbara Weltman to provide business owners with the information they need to succeed. Visit our small business blog, Idea of The Day®, small business books and articles on small business taxes, small business finance and small business legal advice.

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