Md. Supreme Court's Ad Tax Decision Shows Federal Case Not Moot: Appellants

Maryland lost any basis to defend a federal district court’s ruling against businesses challenging the state’s digital ad tax, appellants at the 4th U.S. Circuit Appeals Court said Wednesday. The U.S. District Court of Maryland had said a Maryland court’s ruling that the tax is unlawful moots the federal case. But the Maryland Supreme Court has now overturned that decision (see 2307120062), said U.S. Chamber of Commerce and other appellants (case 22-2275). “Because the state court’s declaration has been vacated for want of jurisdiction, there is no longer any basis to assert that any aspect of the case is moot. And the present absence of any declaratory relief highlights the need for expeditious resolution of the First Amendment issue.” The 4th Circuit “should reverse with instructions to the district court to enter judgment for appellants on their First Amendment claim and to resolve the merits of their challenges to the [digital ad tax law’s] levy.” The appeals court earlier this week set Sept. 20 oral argument in the case (see 2307180021).