Tech groups are suing to halt Marylands new digital services tax

A coalition of tech and business groups have joined together for a lawsuit challenging Maryland’s newly passed digital services tax, as first reported by The Washington Post. The lawsuit, filed in federal district court in Maryland, argues the state tax is preempted by federal law and violates various constitutional prohibitions against state taxes on out-of-state activity.

The lawsuit is led by the US Chamber of Commerce, which is joined by three tech industry groups: Internet Association, NetChoice, and Computer & Communications Industry Association. Membership varies, but all three associations count Google, Facebook, and Amazon as members, as well as other tech giants.

The Maryland law would establish a new gross revenue tax on...

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