Digital Advertising Gross Revenues Tax - Assessments - Appeals and Corrections
Summary
SB605 makes targeted changes to Maryland’s digital advertising gross revenues tax procedures. It creates a formal appeal path for taxpayers who receive a notice of assessment from the Comptroller, allowing them to seek revision of the assessment within 30 days and triggering the existing informal hearing and final determination process used for other state taxes. The bill also authorizes the Comptroller, or a designated employee, to issue an order decreasing or abating an assessment to correct an erroneous assessment, even if the taxpayer did not file a timely appeal or refund claim, so long as the statutory conditions are met.
The bill amends the Tax-General Article provisions governing tax assessments and corrections, specifically adding the digital advertising gross revenues tax to the list of taxes covered by the assessment revision and erroneous-assessment correction procedures. It does not change the underlying tax rate or tax base; instead, it updates administrative remedies and enforcement procedures. The act takes effect January 1, 2026, and applies only to digital advertising gross revenues tax assessments made after December 31, 2025.
Impact
SB605 primarily affects the administration of Maryland’s digital advertising gross revenues tax by placing it within the same appeal and correction framework already used for several other state taxes. It gives affected taxpayers a clearer process to challenge assessments and gives the Comptroller explicit authority to fix erroneous assessments without requiring a timely taxpayer filing. The bill amends Sections 13-508 and 13-509 of the Tax-General Article and leaves the substantive tax liability provisions unchanged.
Sentiment
The bill appears to have been broadly noncontroversial and technically focused. It passed the Senate 47-0 and the House 138-0, indicating strong bipartisan support and no recorded opposition in the voting history provided. The lack of committee transcript material also suggests the measure was treated as an administrative cleanup or procedural refinement rather than a policy dispute.
Contention
No significant contention is evident in the available record. The main policy choice is procedural: whether taxpayers subject to the digital advertising gross revenues tax should have the same appeal and correction rights as taxpayers under other taxes, and whether the Comptroller should have express authority to correct erroneous assessments on its own initiative. Because the bill only adjusts assessment, appeal, and correction mechanics, any concerns would likely center on administrative burden, taxpayer protections, or the Comptroller’s discretion, but no specific objections are documented here.