Digital Economy

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On Friday, December 19, the City Council passed a budget which includes a new Social Media Amusement Tax (SMAT) and increases several existing taxes. If enacted, the SMAT would be a first of its kind tax (in the US) imposed exclusively on social media companies. The SMAT revenue is earmarked to fund Chicago’s mental and…

Initially enacted as a temporary measure, Congress made ITFA permanent in 2016 to reflect the enduring federal commitment to preserve a tax-neutral digital infrastructure and protect an evolving digital economy. Indeed, today’s “internet access” is no longer defined by static homepages and email alone, but by cloud computing, digital advertising ecosystems, streaming platforms, and bundled…

In this episode of the SALT Shaker Podcast, SALT Counsel Jeremy Gove and Chelsea Marmor dive into the evolving intersection of artificial intelligence (AI) and SALT.

As AI technology continues to advance, Jeremy and Chelsea draw a parallel for tax purposes to the early days of the internet – when Congress passed the ITFA to…

On August 15, 2025, the United States Court of Appeals for the Fourth Circuit held that a Maryland statutory provision prohibiting sellers from itemizing the digital advertising tax (DAT) on their invoices violates the First Amendment. As readers are likely aware, the DAT is imposed on gross revenues from digital advertising services in Maryland. After…

On July 3, 2025, the Colorado Court of Appeals held that sales of streaming video service subscriptions are subject to sales tax because they are sales of tangible personal property. Colorado imposes sales tax on retail sales and purchases of “tangible personal property,” which is defined as “corporeal personal property.” In 2021, the Department of…

Yesterday, the Comptroller of Maryland issued Technical Bulletin No. 59, laying out its position on the Digital Advertising Gross Revenues (ominously abbreviated as “DAGR”) tax base. As the DAGR took effect in January 2022, this guidance is not exactly timely. 

Much of Bulletin No. 59 is devoted to the Comptroller’s view of taxability. A…

Yesterday, the U.S. House of Representatives’ Energy and Commerce Committee released its draft reconciliation bill. This bill, which will go through markup today, includes the “Artificial Intelligence and Information Technology Modernization Initiative.” The Committee proposes a 10-year moratorium on states and political subdivisions “enforc[ing] any law or regulation regulating artificial intelligence models, artificial…

Maryland is facing a $3 billion budget gap and is considering a host of tax hikes. On March 24, 2025, the Maryland House of Representatives Committee on Appropriations amended the state’s budget bill, House Bill 352 (cross-filed with Senate Bill 321) to include, among other things, a proposal to expand the sales and use tax…

On Friday, December 6, 2024, the Texas Comptroller held a public hearing in Austin, TX regarding the proposed changes to the data processing regulation (section 3.330) published in the Texas Register on September 13, 2024. Several parties submitted written comments in response to the proposed regulation, including the Texas Taxpayers and Research Association (TTARA)…

On October 9, 2024, the D.C. Tax Revision Commission met to finalize their tax recommendations to the D.C. Council and Mayor. However, the Commission did not reach a consensus and instead opted to perform additional research.

The D.C. Tax Revision Commission’s last activity was to issue a Revised Chairman’s Mark in July 2024. That document…