Freedom Caucus Responds to Court Decision on Digital Ad Tax

The Maryland Freedom Caucus released the following statement after the Fourth Circuit of Appeals strikes down a key provision of the 2020 law creating a digital advertising tax from the 2020 session.

The Maryland Freedom Caucus today responded to the Fourth Circuit Court of Appeals decision striking down a key provision of Maryland’s Digital Advertising Gross Revenues Tax, a law first passed in 2020 over the veto of Governor Larry Hogan.

“The court confirmed what we said from day one: this tax isunconstitutional, reckless, and destined to fail,” said MarylandFreedom Caucus Chair Matt Morgan.

“Instead of strengthening Maryland’s economy, the Democrat supermajority pushed through aradical scheme to shake down tech companies only to waste millions of taxpayer dollars defending a law that was doomed in the courts.

”The digital ad tax was originally pitched as a way to raise up to $250 million annually for the Blueprint for Maryland’s Future education program. Instead, revenues have fallen way short, generating far less than half that amount, and now face possible refunds and additionallegal liabilities.“

Democrats in Annapolis promised this tax would pay for theirspending spree. It hasn’t,” said Freedom Caucus Vice Chair Kathy Szeliga.

“Maryland families are on the hook not only for the tax dollarsalready spent that must be refunded, but for years of legal fees. This is fiscal malpractice.

”The Maryland Freedom Caucus is demanding transparency from the Attorney General’s Office and the Comptroller on how much has been collected, how much is at risk, and how much it has cost the state to defend this failed law. “We told you so,” the Maryland Freedom Caucus concluded.

“Maryland taxpayers deserve answers and accountability.”