By Jonathan Stempel (Reuters) -A federal appeals court on Friday declared unconstitutional a Maryland law prohibiting companies that pass on the costs of the state’s first-of-its-kind digital advertising tax from telling customers why prices went up. Reversing a lower court ruling, the 4th U.S. Circuit Court of Appeals unanimously agreed with the Chamber of Commerce and two other trade groups that the restriction violated members’ First Amendment free speech rights, while insulating Maryland lawmakers from criticism and political accountability. The offices of Maryland’s Attorney General Anthony Brown and the only defendant, state Comptroller Brooke Lierman, did not immediately respond to requests for comment. Aimed at larger businesses such as Amazon.com, Meta Platforms’ Facebook and Alphabet’s Google, Maryland’s 2021 law taxed companies that generated at least $1 million of gross revenue from digital ad services in the state. Maryland imposed levies on a sliding scale based on companies’ global revenue, and lawmakers said the tax could raise $250 million annually. The Chamber of Commerce, NetChoice and the Computer & Communications Industry Association sued, calling the law a punitive assault on digital rather than print advertising. Friday’s decision concerned their objection to a provision against passing on the cost of the tax “by means of a separate fee, surcharge, or line-item,” saying it effectively forbade businesses from shifting blame to lawmakers. Circuit Judge Julius Richardson wrote for a three-judge panel, however, that the provision ensured that companies would bear economic and legal responsibility for the tax. He said Maryland didn’t justify this, and the provision was facially unconstitutional. “The pass-through prevents companies from describing the tax in the one setting where the consumer is guaranteed to look: the invoice,” the judge wrote. “Keeping out of hot water with voters is not among the interests that can justify a speech ban.” Richardson added: “As much today as 250 years ago, criticizing the government – for taxes or anything else – is important discourse in a democratic society. The First Amendment forbids Maryland to suppress it.” The Richmond, Virginia appeals court returned the case to U.S. District Judge Lydia Kay Griggsby in Greenbelt, Maryland, to determine appropriate remedies. In separate statements, the trade groups welcomed the decision. “The Fourth Circuit was absolutely correct,” said Paul Taske, co-director of the NetChoice Litigation Center. “Maryland tried to prevent criticism of its tax scheme, and the Fourth Circuit recognized that tactic for what it was: censorship.” The case is Chamber of Commerce et al v. Lierman, 4th U.S. Circuit Court of Appeals, No. 24-1727. (Reporting by Jonathan Stempel in New York; Editing by Andrea Ricci) in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. Follow these steps: 1. **Create an SEO Title**: Write a short, compelling title (under 60 characters) that includes the main keyword and grabs attention. 2. **Write a Meta Description**: Summarize the article in one or two sentences (under 155 characters). Make it engaging and include the primary keyword naturally. 3. **Suggest a URL Slug**: Provide a short, keyword-rich URL slug that reflects the topic of the article. 4. **Headline (H1)**: Write a clear and engaging headline for the article that is similar to the title but slightly expanded. 5. **Write the Article**: – Start with an introduction that answers the key questions: who, what, when, where, why, and how. – Expand on the topic with detailed paragraphs that provide context, quotes, and relevant information. – Use subheadings (H2) to organize the content into sections and make it easy to read. – Include related keywords naturally throughout the article. – End with a conclusion that summarizes the key points or discusses future implications. 6. **Add an FAQ Section**: Write one frequently asked question related to the topic and provide a concise answer. Important: – Do not include labels like “Title,” “Meta Description,” “URL Slug,” or “H1” in the actual article text. – Keep all SEO elements separate from the main content. – Ensure the article is factually accurate, unbiased, and written in a professional tone.
A portion of Maryland’s digital advertising tax legislation has been ruled unconstitutional.
