Internet groups, US Chamber sue Maryland over digital advertising tax

Agroup representing Amazon.com Inc, Facebook Inc and Alphabet Inc joined the U.S. Chamber of Commerce and others in filing suit to challenge Maryland’s first-in-the nation new digital advertising tax.
The Chamber, the largest U.S. business group; the Internet Association, which represents dozens of tech companies; the Computer & Communications Industry Association; and NetChoice filed suit in U.S. District Court in Maryland seeking an injunction to block the new tax adopted last week by the state legislature over the veto of Republican Governor Larry Hogan.
The suit calls the law “a punitive assault on digital, but not print, advertising. It is illegal in myriad ways and should be declared unlawful and enjoined.”
State lawmakers estimate the tax could raise as much as $250 million a year after it takes effect. Other states are also considering taxing digital advertising.