State Taxation of Digital Advertising Services: Current Trends and Future Implications

• Maryland is currently the only state with a tax on digital advertising services
• Other states, like California and the District of Columbia, are considering similar taxes or fees
• California passed a law in June 2024 imposing a tax on receipts from digital advertising services
• The District of Columbia is considering a new data excise tax on businesses extracting data from residents
• A case challenging Maryland’s digital advertising tax pass-through prohibition was dismissed by a federal district court judge

Source: kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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