Maryland's Digital Ad Tax Ruling: First Amendment Victory and Implications for Businesses

Maryland's Digital Ad Tax Ruling: First Amendment Victory and Implications for Businesses

Maryland's digital ad tax faced a setback as part of it was deemed unconstitutional by a three-judge panel on the 4th Circuit Court of Appeals. The ruling stated that businesses can now disclose the digital ad tax on customer bills, and that the state's ban on this disclosure violates the First Amendment. This decision comes in response to a series of lawsuits filed against the 2021 tax on digital ads. The Court emphasized that disclosing the tax is a form of protest, echoing historical acts of protest like those against the Colonial era Stamp Act.

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