Internet Tax Freedom Act Could Thwart Md. Digital Ad Tax

By Maria Koklanaris
Law 360
Feb. 16, 2021


In addition, the ITFA is broad. One prong is meant to prohibit the taxation of internet access, noted Andrew Appleby, tax professor at Stetson University College of Law. That prong is even more viable today than it was when the ITFA was first enacted in 1998, Appleby said.

But the second prong, which prohibits discrimination against electronic commerce, has been controversial, he said. Not everyone agrees with advocates of technology companies that such companies need to be protected, he said. Appleby said that was clear when Congress was debating whether to make the ITFA permanent — which it did in 2015 — and the sentiment that there is no need to shield technology companies has grown more pronounced with time.

The original intent of the ITFA’s second prong “was to protect a fledgling industry,” Appleby said. “That has changed. Electronic commerce has come a long way and really now has become preeminent.”

This article was originally published on the Law360 website on Feb. 16, 2021, with the headline, “Internet Tax Freedom Act Could Thwart Md.Digital Ad Tax.”