The Fourth Circuit ruled Maryland cannot stop businesses from passing on the digital advertising tax to customers, declaring the restriction unconstitutional. The US Chamber of Commerce and tech trade groups challenged an earlier trial court ruling endorsing the tax provision. Judge Julius N. Richardson noted the prohibition primarily serves to protect Maryland from criticism and political accountability, ultimately prioritizing free speech rights over the tax policy.
Maryland's attempts to prevent businesses from disclosing the digital advertising tax to customers were deemed unconstitutional by the Fourth Circuit, emphasizing free speech over tax policy.
Judge Julius N. Richardson articulated that the prohibition on explaining the tax serves no purpose other than to protect Maryland from potential criticism and political repercussions.
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