Digital Ad Tax Debate Continues ? With New Layers

2/8/21

By Danielle E. Gaines, Maryland Matters

The Maryland State House. Photo by Danielle E. Gaines.

Maryland lawmakers will begin debating afresh this week two of the topics that dominated the last legislative session: a multi-billion education reform plan, and a $350-million tax bill to fund it.

But there’s a new wrinkle to the continued debate ? an emergency bill filed by Senate President Bill Ferguson (D-Baltimore City) on Friday that he says will prevent tech giants from passing along an estimated $250 million tax on digital advertising to Maryland small businesses.

The potential pass-through of the ad tax to Maryland small businesses has been a chief criticism of business groups and Republican Gov. Lawrence J. Hogan Jr. (R).

“These misguided bills would raise taxes and fees on Marylanders at a time when many are already out of work and financially struggling,” Hogan wrote in a veto letter in May. “With our state in the midst of a global pandemic and economic crash, and just beginning on our road to recovery, it would be unconscionable to raise taxes and fees now.”

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