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Maryland enacts new taxes on digital advertising and sales of digital goods

On 12 February 2021, the Maryland legislature overrode Maryland Governor Larry Hogan’s veto of legislation (HB 732) that imposes a new tax on digital advertising. The new tax had been approved by the state’s legislature in early 2020 but, rather than signing HB 732 into law, Governor Hogan rejected the bill, noting that it would “be unconscionable” to raise taxes and fees during a pandemic. Under Maryland law, a three-fifths majority of both houses of the legislature can override a veto and make a bill become law without the governor’s signature.

Source: EY

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