Judge rejects Maryland’s digital ad tax

Maryland’s first-in-the-nation tax on digital advertising has been struck down by a judge in Anne Arundel County on Monday. Judge Alison Asti ruled from the bench in favor of Comcast et al., in the case against Maryland’s Office of the Comptroller.
 

Asti of Anne Arundel County Circuit Court said the Maryland law violates the U.S. Constitution’s prohibition on state interference with interstate commerce. She also ruled that it violates the federal Internet Tax Freedom Act, which prohibits discrimination against electronic commerce.

The comptroller’s office said it is reviewing the decision and deciding on what will be its next steps.