Maryland Beats Business Lobby’s Speech Suit Over Digital Ad Tax

Maryland fended off a lawsuit from the Chamber of Commerce and tech industry lobbying groups challenging the state’s digital advertising tax on First Amendment grounds.

Judge Lydia Kay Griggsby of the US District Court for the District of Maryland ruled Wednesday that although the “pass-through prohibition” in the state’s 2021 digital tax law does restrict protected speech, the business groups failed to show that a substantial number of the law’s applications are unconstitutional.

The pass-through prohibition prevents digital advertising services subject to Maryland’s tax from passing the cost of the tax to advertising customers through additional fees of line-items.

The ...