Maryland's Digital Tax and the ITFA's Catch-22

Abstract

This essay analyzes whether U.S. state-level taxes on digital advertising — like Maryland’s new tax — are barred by the Internet Tax Freedom Act and argues that the Act’s prohibition against “discriminatory” taxes on electronic commerce should be construed narrowly.

Keywords: State Taxes, Digital Advertising, Maryland, Internet Tax Freedom Act, Discriminatory Taxes, Electronic Commerce

JEL Classification: K34, H2