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Maryland votes to adopt online ad tax

The Maryland Senate voted 29-17 to override Maryland Gov. Larry Hogan's veto of the new tax on advertising, which will affect Google, Facebook and other companies making $100 million globally from digital ads targeting people in Maryland. The Maryland House voted to override the veto on Thursday.


The first-in-the-nation tax has stirred up pushback from the tech giants, which are threatening to raise the price for digital advertising in Maryland. Industry groups have argued that businesses in Maryland will ultimately shoulder the costs.

But supporters of the tax say that it's past time for Facebook, Google and Amazon to pay the same taxes as traditional advertisers. Ultimately, the tax could raise an estimated $250 million to fund state education projects.

It's likely that the companies will sue to stop the tax from going into effect, arguing that it violates the First Amendment and federal laws against taxing internet companies.

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