Apple fights back against Maryland’s digital advertising tax in court appeal

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Maryland taxes digital ads

A digital advertising tax law passed in Maryland in 2021 is coming under fire, with Apple and other tech companies appealing the law and demanding refunds on taxes already paid. According to a report from The Baltimore Banner, Apple is leading the charge in opposing the tax. A hearing is set for November 17, and other companies like Google, Amazon, Meta, and Microsoft have filed appeals as well. Apple argues in its court filings that the tax “singles out advertising services delivered over the internet for taxation while advertising services delivered through other means are expressly excluded from taxation altogether.” The company also takes issue with how the taxes are determined to be paid. Americans for Digital Opportunity, which represents the interests of the advertising industry, isn’t a part of the case but its president Doug Mayer offered some commentary on the case. “This suit is just one more proof point that Maryland has bitten off way more than it can chew with this short sighted and illegal tax,” Mayer said. “Digital advertising is utilized by businesses of all sizes and that is exactly who is paying for this now: Maryland businesses both small and large. Someday soon this tax will be ruled unconstitutional, and the state will be forced to pay back every penny it took — hope they haven’t started spending it.”

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