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Maryland’s Digital Ad Tax Getting Axed Offers Pause to States

Oct. 19, 2022, 11:48 PM

States considering taxing web services are paying attention to Maryland’s next steps on its digital advertising tax law, which was struck down by a state judge earlier this week, attorneys and tax pros said Wednesday at the Hartman State and Local Tax Forum.

KPMG US Tax Managing Director Karey Barton said the ruling “will probably put a damper on those specific types of targeted taxes.” Barton worked in the Texas Comptroller’s office when a state legislator suggested following Maryland’s lead.

“Maybe we ought to wait and see how this turns out before we jump out there,” Barton recalled saying ...