Tech groups sue Maryland to block new digital-ad tax from going into effect

Enlarge / None of these companies is keen to hand over a slice of its revenue to Maryland. (credit: Malik Evren | Getty Images)

A group of business organizations led by the US Chamber of Commerce is suing the state of Maryland, seeking to block implementation of the state’s brand-new, first-of-its-kind tax on digital-advertising revenue.

Maryland’s tax bill is “deeply flawed” and “illegal in myriad ways,” the suit (PDF) alleges, claiming that act will “harm Marylanders and small businesses and reduce the overall quality of Internet content.”

“This is a case of legislative overreach, punishing an industry that supports over one hundred thousand jobs in Maryland and contributes tens of billions of dollars to its economy each year,” the Internet Association, one of the plaintiffs, said in a statement about the suit. “Internet services and companies are proud to play a role in creating opportunities for Maryland’s small businesses and citizens.”