Fourth Circuit Court of Appeals Holds Maryland's Digital Ad Tax Pass-Through Ban Unconstitutional Under First Amendment

On 15 August 2025, the United States Fourth Circuit Court of Appeals issued a decision finding that the "pass-through provision" in Maryland's Digital Advertising Gross Revenues Tax law is facially unconstitutional under the First Amendment. The provision prohibits companies from itemizing the cost of the tax on customer invoices, specifically banning separate fees, surcharges, or line-items that would indicate the tax's impact on pricing. The plaintiffs argued that this restriction suppress…