Maryland Legislature Overrides Veto of Digital Ad Tax

FOR IMMEDIATE RELEASE 

Washington D.C. (February 12, 2021) - The Association of National Advertisers is extremely disappointed by the Maryland General Assembly’s decision to overturn Governor Larry Hogan’s veto of HB 732 (The Digital Advertising Gross Revenue Tax) today. As businesses struggle amid the challenging economic and health threats posed by the COVID-19 pandemic, now is clearly not the time to place severe burdens on businesses and consumers. 

“ANA believes this law will be found to be unconstitutional and violates the Internet Tax Fairness Act that bans discriminatory taxes on Internet digital communications. Enacting this law will slow job growth in Maryland, dampen consumer demand, discourage business investment, and ultimately cause consumers to pay far more for products and services. It will create a highly toxic marketplace for digital advertising and needs to be overturned in the courts,” said Dan Jaffe, Group Executive Vice President of Government Relations, ANA. 

We anticipate a successful challenge in the courts to this law, negating the legislature’s argument that this tax will provide funding for education. Rather, the state will face costly litigation against this unconstitutional decision that violates federal law. ANA believes that Maryland deserves far better than the highly negative commercial environment that this law would create, and we intend to continue to fight against this misguided bill. 

ABOUT THE ANA:

The ANA (Association of National Advertisers) accelerates growth for marketing professionals, brands, and the entire industry. With a mission to shape the future of marketing, the ANA sets the agenda for the industry, connecting its members to unparalleled expertise, industry-leading resources, and an influential global network. Representing over 1,600 companies — including 1,000+ client-side marketers, 600 marketing solutions providers, and 20,000 brands — ANA members collectively influence $400 billion in annual marketing spending. By championing the 12-point ANA Growth Agenda and the CMO Growth Council, the ANA drives actionable change, empowers marketers, shapes the marketing ecosystem, and delivers exceptional experiences at every touchpoint. Since 1910, the ANA has been setting the agenda for industry transformation. It enables marketers to advance their ambitions, make better decisions, and create lasting impact for their organizations and the industry.

MEDIA CONTACT:

Dan Jaffe
Group EVP, Government Relations, ANA
Phone: 646.369.4886
Email: djaffe@ana.net