Maryland overrides Larry Hogan veto and passes tax aimed at Big Tech ad revenue

On Feb. 11, 2021, the Maryland Legislature overrode Gov. Larry Hogan’s veto and enacted the first digital service tax in the United States to raise education revenue. A legal battle will decide if states have the authority to tax companies headquartered in another.

The bill in question is House Bill 732: Taxation — Tobacco Tax, Sales and Use Tax, and Digital Advertising Gross Revenues Tax. The bill takes its design from a European proposal to impose a 3% digital services tax on revenue derived from digital advertising. The European bill itself failed to get approval. Still, tax experts view it as the starting point that other European Union members
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