The Computer & Communications Industry Association (CCIA), along with the U.S. Chamber of Commerce and NetChoice, has filed a brief at the U.S. Court of Appeals for the Fourth Circuit. The brief challenges the Maryland Digital Advertising Gross Revenues Tax Act, arguing that it violates the First Amendment.
The act imposes a tax on global revenues of websites but restricts these sites from disclosing their tax burdens to users. The State of Maryland acknowledges that this statute regulates speech. According to the appellate brief, this regulation effectively bans websites from communicating with users about service costs, which is considered political speech.
Stephanie Joyce, Senior Vice President and Chief of Staff at CCIA, stated: “It is unconstitutional when the government attempts to muzzle lawful speech. This statute forces websites to pay substantial portions of their global revenue to the state but hide these costs from consumers. The state is wholly unable to justify this speech ban.”
CCIA has been actively involved in protecting online speech from governmental interference for years.