States To Explore Digital Taxes Despite Ad Tax Suits, Attys Say

By Paul Williams (May 10, 2021, 7:07 PM EDT) -- Pending legal challenges against Maryland's first-in-the-nation digital advertising tax are unlikely to deter lawmakers in other states from exploring other novel methods of taxing the digital economy, tax practitioners said Monday.

Even as lawsuits from big tech and telecommunications companies seek to prevent Maryland's digital ad tax from taking effect, legislators elsewhere will likely forge ahead with new measures to draw tax revenue from large online companies, panelists said at the American Bar Association tax section's virtual May meeting.

"I think that some form of taxation of the digital economy is inevitable," said Michael Semes, of counsel at BakerHostetler and a...

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