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…
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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.