Taxes on Digital Ads, Cigarettes Among Md. House Veto Overrides

A digital advertising tax that would pay for Maryland’s sweeping education reform was among Gov. Larry Hogan’s, R, vetoes that the state’s Democratic House of Delegates overrode Thursday.

The state predicts revenue as high as $250 million in the first year after implementation of the digital advertising tax, which would be the first of its kind in the U.S., from national or international companies or state taxpayers expecting to report significant revenue from digital advertising, according to legislative analysis.

The vetoed bill, HB0732, which the House overrode, would also raise taxes on e-cigarettes and tobacco products, including bumping tax on cigarettes from $2.00 to $3.75 per pack.

Discouraging individuals, particularly children, from purchasing tobacco products was a primary goal of the bill, Del. Eric Luedtke, D–Montgomery, who lost both his mother and grandmother to smoking-related illnesses, and who expects his 20 years of smoking will have a toll on his own health, said during Thursday’s floor session.

Republican delegates, including Del. Jason Buckel, R–Allegany, who lost his grandparents to smoking-related illnesses 45 minutes apart, argued that the bill would do little to prevent smoking.

Del. Mike Griffith, R–Cecil and Harford, said tech giants would find ways sidestep the digital advertising tax, which would instead hurt small businesses already reeling from the pandemic.

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