Maryland’s Digital Advertising Tax “pass-through provision” was ruled unconstitutional by US District Court.
The US District Court for the District of Maryland issued a final judgment on 15 October 2025 in the case Chamber of Commerce of the United States of America, et al. v. Brooke Lierman, concerning Maryland’s Digital Advertising Gross Revenues Tax.
The rule bars companies from listing the tax cost on customer invoices, expressly forbidding separate charges, surcharges, or line items that show how the tax affects prices.
The court ruled in favour of the plaintiffs, including the US Chamber of Commerce, finding that the “pass-through provision” under Md. Code, Tax-Gen. § 7.5-102(c) violates the First Amendment. As a result, Comptroller Brooke Lierman is permanently barred from enforcing the provision against the plaintiffs’ member companies.
The judgment also confirms that the court will maintain oversight to ensure compliance with its ruling.
