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Maryland wants to tax Facebook and Google. Internet groups are fighting back.




Maryland’s first domestic law to tax digital advertising by big tech companies such as Facebook and Google has been challenged in federal court as a disciplinary attack on digital advertising, according to a federal proceeding filed by a major industry group on Thursday. And should be withdrawn. ..

The proceedings filed in the US District Court in Baltimore allege that the law is illegal in countless ways. The law alleges that it violates the Federal Internet Tax Freedom Act and other federal laws that prohibit discrimination against e-commerce.

We are seeking an injunction to prevent the enforcement of the law. Plaintiffs state that the proceedings should notify other states, taking into account similar taxes that such measures would face in court opposition.

Plaintiffs’ chief lawyer, Michael Kimberley, said it was not surprising that enacting this type of law was really nothing more than a one-way ticket to the courthouse.

Plaintiffs include the United States Chamber of Commerce, the Internet Association, NetChoice, and the Computer & Communications Industry Association.

The Maryland State House, which is governed by the Democratic Party, was vetoed last week by Republican Governor Larry Hogans.

Proponents say the new law aims to modernize the state’s tax system and force prosperous big tech companies to pay fair distributions. Assess taxes on revenues made by companies affected by digital advertising found in Maryland. They say an estimated $ 250 million in annual income will help pay for education.

Bill Ferguson, Maryland Senate Chairman, a Baltimore Democrat who sponsored the bill last year, said the proceedings were not surprising. But he said it’s a shame to see these companies spending millions of dollars on strong lawyers instead of paying a fair share.

According to Ferguson, these companies have grown exponentially for 20 years using state privileges and have benefited from the active, unpaid collection of personal and personal information about Maryland residents. Was a free rider on Maryland’s investment in our civil infrastructure.

The Attorney General of Maryland has refused to comment on the proceedings in dispute.

The law taxes revenues made by companies affected by digital advertising displayed in Maryland. The tax rate depends on the total global revenue of a company that earns more than $ 100 million worldwide.

The tax rate for companies with total annual revenue of $ 100 million will be 2.5%. 5% for companies with revenues of $ 1 billion or more. 7.5% for companies with revenues of $ 5 billion or more and 10% for companies with revenues of $ 15 billion or more.

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