A Fourth Circuit judge criticized Maryland's defense of its digital advertising tax, suggesting the arguments lacked clarity. The US Chamber of Commerce and tech trade groups are appealing a ruling that upheld the tax's legitimacy against free speech concerns. During oral arguments, judges questioned the state's rationale for making taxpayers liable for the tax instead of customers, indicating broader implications for digital advertising and the interpretation of regulatory authority over such taxes in the tech industry.
"The court is questioning the legitimacy of Maryland's digital advertising tax, specifically whether it burdens free speech and the interests of taxpayers versus customers."
"The Fourth Circuit judges are scrutinizing Maryland's assertion that the tax provision is legally valid despite challenges from the US Chamber of Commerce and tech groups."
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