A lawsuit seeking to block Maryland’s first-of-its-kind tax on social media digital advertising revenue should be dismissed, the Maryland attorney general’s office argued in a court filing this week.
Tech lobbyists and the U.S. Chamber of Commerce filed the lawsuit in February, days after the new tax was enacted by a veto override vote in the General Assembly.
The groups argue that the tax is “a punitive assault” on digital advertising and violates the U.S. Internet Tax Freedom Act as well as the commerce and due process clauses of the U.S. Constitution.
In a motion to dismiss filed late Tuesday, the state rejects all of their claims, and argues that the case should be brought in Maryland Tax Court.
Click here to read the rest of the article written by Danielle E. Gaines over at Maryland Matters