Coalition Forms to Oppose Veto Override of Digital Tax Bill
Marylanders for Tax Fairness, a coalition of businesses, advocacy groups and individuals, launched a campaign on Tuesday to oppose the General Assembly’s potential override of a $350 million tax revenue bill vetoed this spring by Gov. Lawrence J. Hogan Jr. (R).
The digital advertising bill was originally introduced by Senate President Bill Ferguson (D-Baltimore City). In the final days of session, it was combined with other revenue-generating tax bills as part of an overall plan to cover increased costs of education reform.
Ferguson and Democrats who supported the legislation said it was intended to target only a small number of massive companies.
“This tax affects companies only making $100,000,000 or more a year on the free exploitation of Marylanders’ personal and private data,” Ferguson’s office said in response to the ad. “We have, and will continue to stand side-by-side with small businesses to protect them from being taken advantage of by multinational corporations. Shame on these out-of-state corporations that are looking to harm Maryland small businesses instead of paying their fair share.”
Opponents in the legislature and business community argue that the costs of the legislation will be passed on to smaller companies — and in turn to consumers.
“Although this looks like a tax applicable to only large companies, businesses and consumers should not be fooled,” said Cailey Locklair, president of the Maryland Retailers Association. “Ultimately, small businesses will bear this cost and consumers at the end of the day will pay for it.”
