Maryland judges question jurisdiction of digital ad tax case
Attorneys have debated the proper jurisdiction for settling a legal challenge to the first-in-the-nation tax on digital advertising during arguments before Maryland’s highest court
ANNAPOLIS, Md. (AP) — Attorneys debated the proper jurisdiction for settling a legal challenge to the first-in-the-nation tax on digital advertising during arguments before Maryland's highest court on Friday.
Meanwhile, an attorney for the state appeared to surprise judges when she said Maryland has already collected some taxes from companies that voluntarily submitted revenues to the state under the tax aimed at Big Tech.
Last year a lower Maryland court ruled that the tax on digital advertising violates the federal Internet Tax Freedom Act, which prohibits discrimination against electronic commerce. The court also held that the law violates the U.S. Constitution's prohibition on state interference with interstate commerce.
The state comptroller is appealing the decision in a case brought by Verizon Media Inc. and Comcast.
