Other/Miscellaneous:
Maryland Supreme Court Issues Formal Opinion Vacating Decision that Invalidated Gross Receipts Tax on Digital Ad Services
Case No. SCM-REG-0032-2022, Md. (7/12/23). As a follow-up to its unsigned order from earlier this year that vacated the Anne Arundel County Circuit Court’s (“Circuit Court”) 2022 decision that Maryland’s novel tax on digital advertising services violates the US Constitution and federal Internet Tax Freedom Act [see previously issued Multistate Tax Alert for more details on this earlier unsigned order], the Maryland Supreme Court (Court) issued a formal opinion reiterating that the Circuit Court lacked jurisdiction over the action because those challenging the tax failed to exhaust their administrative remedies. In doing so, the Court explains that:
With respect to the companies’ challenge to Maryland’s Digital Advertising Gross Revenues Tax Act, the administrative remedies in the Maryland Tax-General Article are exclusive;
The challenging companies were required to exhaust their remedies; and
Their failure to do so deprived the Circuit Court of jurisdiction to entertain this declaratory judgment action.
30 Rockefeller Plaza New York, NY 10112-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 peopleworldwide make an impact that matters at www.deloitte.com.
