While the measure only applies to advertisements shown to Maryland citizens, a “copycat” bill was introduced to New York lawmakers last week. Nebraska is considering a similar measure. Both the New York and Maryland bill will collect taxes on “digital advertising services,” which include banner ads, search advertising and “other comparable services.”
“This is a first-of-its-kind punitive tax on digital advertising,” Stephen P. Kranz, a D.C.-based attorney and partner at McDermott, Will and Emery, says. “There are a lot of companies in the digital advertising space, some obvious names, but many companies will be impacted by this legislation.”
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