Other/Miscellaneous:
Maryland Comptroller Addresses State High Court’s Digital Ad Gross Revenues Tax Ruling
Maryland Tax Alert: Publication of Digital Advertising Gross Revenues Tax Return, Md. Comptroller (5/10/23). In response to the Maryland Supreme Court vacating the Anne Arundel County Circuit Court’s 2022 decision that Maryland’s novel tax on digital advertising services (i.e., the “Digital Advertising Gross Revenues Tax” or “DAGRT”) violates the US Constitution and federal Internet Tax Freedom Act [see State Tax Matters, Issue 2023-19, for more details on this recent Maryland Supreme Court ruling], the Maryland Comptroller (Comptroller) explains that because the annual return for the DAGRT for tax year 2022 was due on April 17, 2023, any taxpayer who delayed filing a 2022 DAGRT return pending the outcome of the case “should file their return and remit their tax payment as required by statute.” The Comptroller notes that the DAGRT is a separate tax from the income tax, and there is no provision in Maryland law for a six-month filing extension as exists for income taxes; accordingly, interest accrues on unpaid DAGRT from the date the tax is due.
See forthcoming Multistate Tax Alert for more details on these recent DAGRT-related developments, and please contact us with any questions in the meantime.
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