Digital Ad Taxes Could Be Changed to Withstand Litigation, Experts Say
By Lauren Loricchio
Feb. 17, 2021
Andrew Appleby, assistant professor at Stetson University College of Law, said he also thinks the tax would violate the plain language of the ITFA.
Appleby said there are ways for states to tax digital advertising but that Maryland’s tax is “one of the less precise approaches.”
“It is essentially taking an international type [digital services tax] and imposing it at the state and local level, which is problematic because we have constitutional limitations on state taxation and we have this federal preemption issue with ITFA,” Appleby said.
“With that said, it doesn’t mean that a state court is necessarily going to strike it down. Particularly on the basis of federal preemption, state courts are often hesitant to do that,” Appleby said.
This article was originally published on the TaxNotes State website on Feb. 17, 2021, with the headline, “Digital Ad Taxes Could Be Changed to Withstand Litigation, Experts Say.”
Post date: Feb. 17, 2021