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On August 31, 2021, the Maryland Comptroller filed proposed regulations on the controversial digital advertising gross revenues tax (the DAT) with the Joint Committee on Administrative, Executive, and Legislative Review. Of primary interest to potential DAT taxpayers, and described in this Legal Alert, the regulations adopt a device-based apportionment fraction. The comment period for the…

On June 3, 2021, the Maryland Comptroller of Treasury issued a revised version of Business Tax Tip #29, which clarifies the Comptroller’s interpretation of its sales and use tax on “digital products,” including software. With particular attention given to recently-effective amendments by S.B. 787, the revised version explains the Comptroller’s interpretation and application…

In Travelocity.com LP v. Comptroller of Maryland, filed April 30, 2021, the Maryland Court of Appeals held that the taxpayer did not qualify as a “vendor” for purposes of sales and use tax for years prior to a 2015 law change. The taxpayer was an online travel company that provided a platform to review…

Maryland had previously enacted two important – and troubling – sets of tax changes: a new tax on digital advertising and a substantial expansion of its sales tax to digital products and services.  As a result of several significant problems with both tax changes, the Maryland legislature just passed Senate Bill 787.

  • S.B. 787 amends

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The Maryland Comptroller of Public Accounts issued guidance interpreting 2020 H.B. 932, entitled the 21st-Century Economy Fairness Act. Effective March 14, 2021, the act expanded the sales and use tax to sales and uses of digital products. Pursuant to its guidance, the Comptroller will apply tax to a variety of digital products – including e-books,…

Immediately before last Friday’s deadline for the filing of unrestricted bills, Texas lawmakers introduced a digital advertising tax bill and a bill that would expand sales tax to a wide array of services.

H.B. 4467, filed on March 12 by Rep. Trey Martinez Fischer (D-TX-116) would impose a tax on gross revenue from digital…

A pair of recently-introduced Maryland bills would create a whistleblower program within the Maryland Comptroller’s office and possibly result in a headache for many taxpayers. The proposed whistleblower bills appear to be modeled after the IRS’ whistleblower program, although they contain a noticeably low materiality threshold and allow for the anonymous reporting of complaints.

The…

In this episode of the SALT Shaker Podcast policy series, we discuss all things Maryland digital advertising tax. Talk about drama! We have a brand new tax, vetoes, veto overrides and litigation. State tax policy doesn’t get more exciting than this! Host and Eversheds Sutherland Partner Nikki Dobay of the Sacramento office is joined by…

Earlier today, the Maryland Senate passed S.B. 787, Digital Advertising Gross Revenues Tax and Tobacco Tax – Alterations and Implementation, on third reading (46-0). As amended, S.B. 787 makes the following relevant changes to the digital advertising tax:

  1. Exempts advertisement services on digital interfaces owned or operated by or operated on behalf of

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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…