Maryland Legislature Overrides Veto of Digital Ad Tax

FOR IMMEDIATE RELEASE 

Washington D.C. (February 12, 2021) - The Association of National Advertisers is extremely disappointed by the Maryland General Assembly’s decision to overturn Governor Larry Hogan’s veto of HB 732 (The Digital Advertising Gross Revenue Tax) today. As businesses struggle amid the challenging economic and health threats posed by the COVID-19 pandemic, now is clearly not the time to place severe burdens on businesses and consumers. 

“ANA believes this law will be found to be unconstitutional and violates the Internet Tax Fairness Act that bans discriminatory taxes on Internet digital communications. Enacting this law will slow job growth in Maryland, dampen consumer demand, discourage business investment, and ultimately cause consumers to pay far more for products and services. It will create a highly toxic marketplace for digital advertising and needs to be overturned in the courts,” said Dan Jaffe, Group Executive Vice President of Government Relations, ANA. 

We anticipate a successful challenge in the courts to this law, negating the legislature’s argument that this tax will provide funding for education. Rather, the state will face costly litigation against this unconstitutional decision that violates federal law. ANA believes that Maryland deserves far better than the highly negative commercial environment that this law would create, and we intend to continue to fight against this misguided bill. 

ABOUT THE ANA:

The Association of National Advertisers (ANA) is the definitive voice of the marketing industry. Since 1910, we have set and advanced the agenda for marketing transformation, connecting over 1,600 member companies to an influential global network, insights and resources that drive growth. Our members represent 20,000 brands and $400 billion in annual marketing investment. Through industry-leading research, the CMO Growth Council, and our proprietary Growth Agenda and Practices, the ANA empowers marketers to shape the future of marketing and create lasting impact for their organizations and the industry.

MEDIA CONTACT:

Dan Jaffe
Group EVP, Government Relations, ANA
Phone: 646.369.4886
Email: [email protected]