# Tax - General (GTG)

## Title 7.5. Digital Advertising Gross Revenues Tax

### Subtitle 1. Definitions; General Provisions

#### Section 7.5-101

(a) In this title the following words have the meanings indicated.

(b) "Annual gross revenues" means income or revenue from all sources, before any expenses or taxes, computed according to generally accepted accounting principles.

(c) "Assessable base" means the annual gross revenues derived from digital advertising services in the State.

(d) "Broadcast entity" means an entity that is primarily engaged in the business of operating a broadcast television or radio station.

(e)

  (1) "Digital advertising services" includes advertisement services on a digital interface, including advertisements in the form of banner advertising, search engine advertising, interstitial advertising, and other comparable advertising services.

  (2) "Digital advertising services" does not include advertisement services on digital interfaces owned or operated by or operated on behalf of a broadcast entity or news media entity.

(f) "Digital interface" means any type of software, including a website, part of a website, or application, that a user is able to access.

(g)

  (1) "News media entity" means an entity engaged primarily in the business of newsgathering, reporting, or publishing articles or commentary about news, current events, culture, or other matters of public interest.

  (2) "News media entity" does not include an entity that is primarily an aggregator or republisher of third-party content.

(h) "User" means an individual or any other person who accesses a digital interface with a device.

#### Section 7.5-102

(a) A tax is imposed on annual gross revenues of a person derived from digital advertising services in the State.

(b)

  (1) For purposes of this title, the part of the annual gross revenues of a person derived from digital advertising services in the State shall be determined using an apportionment fraction:

    (i) the numerator of which is the annual gross revenues of a person derived from digital advertising services in the State; and

    (ii) the denominator of which is the annual gross revenues of a person derived from digital advertising services in the United States.

  (2) The Comptroller shall adopt regulations that determine the state from which revenues from digital advertising services are derived.

(c) A person who derives gross revenues from digital advertising services in the State may not directly pass on the cost of the tax imposed under this section to a customer who purchases the digital advertising services by means of a separate fee, surcharge, or line-item.

#### Section 7.5-103

The digital advertising gross revenues tax rate is:

(1)

  (2) 5% of the assessable base for a person with global annual gross revenues of $100,000,000 through $1,000,000,000;

(2) 5% of the assessable base for a person with global annual gross revenues of $1,000,000,001 through $5,000,000,000;

(3)

  (7) 5% of the assessable base for a person with global annual gross revenues of $5,000,000,001 through $15,000,000,000; and

(4) 10% of the assessable base for a person with global annual gross revenues exceeding $15,000,000,000.

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Md. Code Ann., Tax-Gen. (as displayed at mgaleg.maryland.gov, October 16, 2026)