Digital ad tax
Maryland Digital Advertising Ruling Shouldn’t Stop Other States from Considering Ad Taxes
August 26, 2026 • By Nick Johnson
Consumers are increasingly bombarded with advertisements based on our personal data. This explosion in targeted advertising is leading state policymakers to revisit the tax treatment of advertising, which has long been exempt from sales tax.
As we head into summer, many state legislatures are in the final stretches of their sessions. Rhode Island moved another step closer to joining the ranks of Washington, Maine, and Hawai’i in enacting a new high-income surcharge this year.
An advertising tax offers a way to raise significant money from a sector of the economy that has been getting a free ride for decades.
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