Md. legislation could tax online advertising

HAGERSTOWN, MD—Washington County residents are encouraged to sign a petition in support of Gov. Larry Hogan’s veto of legislation taxing digital advertising services.

At the end of the 2020 Maryland legislative session, the General Assembly passed a bill that would create a gross receipts tax on revenues derived from digital advertising services in Maryland.

The outcome was legislation that will increase costs for every single person and business that advertises services online—from the smallest mom-and-pop to the largest corporation.

Hogan promptly vetoed the bill.

“A vote to override Governor Hogan’s veto may occur when the General Assembly convenes in January. If this legislation passes it will be bad for business – small and large,” said Paul Frey, president and CEO of the Washington County Chamber of Commerce.

Frey said businesses of all size are marketing online, as access to online platforms is direct and easy to manage, and the digital advertising ecosystem benefits entities of every type across the entire spectrum of Maryland’s economy.

If the General Assembly overrides the governor’s veto of HB 732 when it returns to Annapolis in January, the result will be increased costs for Maryland’s job creators when they are hurting the most as a result of the COVID-19 pandemic, he said.

If the veto is overridden, Maryland would be the only state in the country to enact an online advertising tax.

Marylanders who wish to sign the petition can visit