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Comcast, Verizon Sue Maryland Over New Digital Advertising Tax

April 16, 2021, 3:45 PM

Maryland’s new tax on digital advertising violates the Internet Tax Freedom Act and the due process clause and should be tossed out as unconstitutional, according to a lawsuit from Verizon Media Inc. and Comcast Cable Communications.

Maryland’s Digital Advertising Gross Revenues Tax, the first of its kind in the U.S., took effect March 14 and applies to tax years after Dec. 31, 2020. It imposes tax on gross revenue derived from digital advertising services in Maryland at graduated rates, from a minimum 2.5% to a maximum of 10%.

According to the lawsuit filed Thursday, by singling out “advertising conducted through...

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