Md. AG Says District Court Can't Judge Digital Ad Tax
Maryland's attorney general said the Tax Injunction Act bars federal challenge of the state's digital ad tax. In a Monday filing (in Pacer) at U.S. District Court in Greenbelt, Maryland, AG Brian Frosh (D) urged dismissing the case and industry’s…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
motion for summary judgment. The 1948 tax law says federal district courts “shall not enjoin, suspend or restrain the assessment, levy or collection of any tax under State law where a plain, speedy, and efficient remedy may be had in the courts of such State.” At issue here is a tax and “federal courts have permitted a suit challenging a tax passthrough prohibition only where plaintiffs did not challenge the tax itself,” wrote the AG. The exception for lacking an efficient remedy doesn’t apply, it said.