Analysts estimate that the tax will generate up to $250 million for schools in the state in the first year. It will also probably face fierce legal challenges.
Maryland Governor Larry Hogan has vetoed a bill that would have imposed a new tax on digital ad revenue. “With our state in the midst of a global pandemic and economic crash, and just beginning on our road to recovery, it would be unconscionable to raise taxes and fees now,” he said Thursday
Facebook, Google and other online companies could face new taxes in Maryland, if a bill passed this week is signed by the governor. The measure, SB2, would impose new taxes on companies that glean than $100 million in digital ad revenue. Rates would vary from 2.5% to 10% of revenue attributable to Maryland, with the percentage tied to global revenue. The Association of National Advertisers is asking Gov. Larry Hogan to veto it.
Maryland voters endorsed a constitutional amendment allowing casinos in 2008, but further commercial gambling expansion requires another voter referendum. Lawmakers failed to pass legislation to put sports betting on last November’s ballot, but momentum appears to be building to act this year.
Gov. Larry Hogan, House Speaker Michael E. Busch and Senate President Thomas V. Mike Miller Jr. are hoping to forge an agreement during the 2019 legislative session on a measure to expand legalized gambling in Maryland to include wagering on professional sports teams and contests. The D.C. Council voted on Tuesday to legalize sports betting, becoming the first jurisdiction in the region to do so.
Maryland Senate President Thomas V. Mike Miller may have pushed to legalize casinos in Maryland, but he will not champion fantasy sports-betting websites. Miller said Monday commercial fantasy sites like DraftKings and FanDuel need to stop operating in Maryland or propose legislation to make their ventures legal in the state.