Maryland’s Vetoed Digital Tax Proposals Spark States’ Interest

Maryland’s proposed taxes on digital advertising and digital goods could still be revived this year, with several states possibly following its proposal to plug budget gaps during their upcoming 2021 legislative sessions.

Maryland’s legislature, before the end of the year, could override Gov. Larry Hogan‘s (R) veto on two novel tax bills—H.B. 732, which would create a first-in-the-nation digital advertising gross revenues tax, and H.B. 932, which would impose a 6% tax on sales of digital goods. Lawmakers supported both bills with strong majorities.

The Maryland proposals attracted interest in several states this year and similar ...