Maryland ntroduced a bill to impose a tax on revenues derived from digital advertising. A tax on digital advertising must rely on the assumption that value is created in a state regardless of a digital advertising provider’s presence in that state other than large user bases. In other words, the taxable event or tax base is an assumed value creation in the meeting between the Maryland user and the online advertisement without regard for the costs of developing and maintaining the software, which allows these online interactions. The rate ranges from 2.5 to 10 percent of gross revenues based on the company’s global annual gross revenues. Companies with revenues below $100 million are exempt from the tax.
Source Tax Foundation
