In this chapter, the following terms have the meanings indicated. Terms Defined. “Access” means the transmittal, display, embedding, or other availability to a user for viewing or interaction. “Device” means any medium through which digital advertising services may be accessed, including stationary or portable computing devices, tablets, phones, and smart devices. Digital Advertising Services. “Digital advertising services” means advertising services on a digital interface that are: Programmatic; and Visually conveyed. “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; and “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 as defined in Tax-General Article, §7.5-101, Annotated Code of Maryland; Any advertising services that are not programmatic; or Any advertising services that are not visually conveyed. Digital interface. “Digital interface” means any type of software, including a website, part of a website, or application, that a user is able to access; and Can be accessed or conveyed either on or off the Internet. “Location” means the actual, physical location of a digital interface when a digital advertising service is accessed by a user. “Other comparable advertising services” includes the following digital advertising services: Display advertising; Internet programmatic video advertising; Multichannel video programming distributor advertising conveyed via cable television, satellite television, or a digital fiber-optic distribution system; Advertising on social media; Native advertising; and Incentivized or rewarded advertising. Programmatic. “Programmatic” means capable of automating advertising services. Programmatic digital advertising services may be sold in real time by employing technology that uses computer- or software-driven workflow or machine learning algorithms to deliver advertisements to users based on advertiser-defined parameters, including precise user targeting data such as user: Geographic locations; Types of devices; Recent online search behaviors; Browsing history; Shopping history; Purchase history; and Biographical and other information compiled in databases. “User” means an individual or any other person who accesses a digital interface with a device. Revenues from digital advertising services are derived in the State when any portion of those services are accessed through a device located within the State. Sourcing of digital advertising revenues to the State is based upon the portion of those devices located within the State. The amount of digital advertising gross revenue attributable to the State shall be computed as follows: An apportionment factor shall be developed as a fraction, where the numerator is the number of devices that have accessed the digital advertising services from a location in the State, and the denominator is the number of devices that have accessed the digital advertising services from any location. Devices whose location are indeterminate shall be excluded from both the numerator and denominator of the apportionment factor, without any adjustment to the amount of revenue to be apportioned. The developed apportionment factor shall be applied to the digital advertising gross revenue received by the taxpayer to compute the digital advertising gross revenue attributable to the State. Determining the Location of a Device. The location of a device shall be determined by the taxpayer using the totality of the data within their possession or control, including both technical information and nontechnical information included in the contract for digital advertising services. Each taxpayer shall use the information within their possession or control which most reliably identifies a device’s location. Technical information which may be used to determine a device’s location includes, but is not limited to: Internet protocol; Geolocation data; Device registration; Cookies; Industry standard metrics; or Any other comparable information. The location of each device shall be determined by a totality of the facts and circumstances to be: Within the State; Not within the State, but within the United States; Not within the United States; or Indeterminate. Revenues from digital advertising services are derived in the United States when any portion of those services are accessed by devices within the United States. In determining the location of devices in this section, taxpayers shall use a method consistent with their determination of revenues derived from the State. Taxpayers will determine the location of a device using the totality of the data within their possession or control, as described in Regulation .02 of this chapter. Unless an act that changes the digital advertising gross revenues tax rate provides otherwise, if the rate changes on a date other than January 1, a person shall compute the digital advertising gross revenues tax using the tax rate that applies to each part of the year. Each person required under Tax-General Article, Title 7.5, Annotated Code of Maryland, to file a digital advertising gross revenues tax return or estimated digital advertising gross revenues tax declaration or return shall file a return or declaration with the Comptroller, whether or not: The person owes digital advertising gross revenues tax; or The Comptroller sends the person a form or otherwise requests that the return or declaration be filed. Each digital advertising gross revenues tax return and estimated digital advertising gross revenues tax declaration and return shall be: Signed in the same manner required for the signing of a federal return under §§6061—6064 of the Internal Revenue Code; and Made under oath. To properly identify persons listed in a return or other document, a person shall include in the document the taxpayer identification, Federal Employer Identification, or other identifying number that the Comptroller requires: Of the person required to file the return or document; and Of the person on whose behalf the return or document is filed. Each person required to file a digital advertising gross revenues return or estimated digital advertising gross revenues tax declaration or return shall: Comply with the regulations of the Comptroller; Keep the records that the Comptroller requires; and Attach to a digital advertising gross revenues return or otherwise file with the Comptroller any records or statements that the Comptroller requires. The Comptroller shall provide that a digital advertising gross revenues tax return may be completed using whole dollar amounts instead of expressing amounts in exact dollars and cents by: Disregarding a fractional part of a dollar less than 50 cents; and Increasing to a dollar a fractional part of a dollar of at least 50 cents. Each person that reasonably expects estimated digital advertising gross revenues tax for a calendar year to exceed $1,000,000 shall file a declaration of estimated digital advertising gross revenues tax in the form and manner prescribed by the Comptroller. Tax-General Article, §§2-102, 2-103, and 7.5-102, Annotated Code of Maryland Effective date: December 13, 2021 (48:25 Md. R. 1079) Regulation .01B amended effective March 2, 2026 (53:4 Md. R. 183)