- Court Ruling: On August 15, 2025, the US Court of Appeals for the Fourth Circuit reversed a lower court’s decision, ruling that Maryland’s digital advertising tax provision prohibiting the pass-through of the tax to customers violates the First Amendment, as it regulates speech and does not meet heightened scrutiny.
- Implications for Communication: The decision allows businesses to itemize and communicate tax-related price changes to customers, emphasizing that the state cannot prevent entities from indicating that a price increase is due to a Maryland tax.
- Recommended Actions: Companies should review their invoices and customer communications in Maryland while awaiting further developments on the court’s ruling and the Maryland Comptroller’s response to the decision.
Source PwC
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