Earlier today, in a last minute addition to the Maryland Senate’s Budget and Taxation Committee hearing, the committee voted to approve amendments to S.B. 787, Digital Advertising Gross Revenues Tax – Exemption and Restriction. Most notably, the amendments would delay the start of the digital advertising tax to January 1, 2022.
The other relevant amendments are to:
- Designate the bill as an emergency measure, meaning that it will take effect when enacted, rather than 30 days after the legislative override of any Governor veto; and
- Strike the contingency that the bill will be effective if the H.B. 732 veto is overridden (as it was already overridden on February 12, 2021).
There were no changes to the anti-passthrough or broadcast and news media entity exemptions. The amendment language is not yet publicly available.
S.B. 787 will next head to the Senate floor for second reading. A hearing is set for 1:30 p.m. today on H.B. 1200, the House of Delegates companion bill to S.B. 787. We will be watching that hearing to see whether any amendments are proposed at that time.