As part of the series of 2022 ABA/IPT Advanced Tax Seminars, Miles & Stockbridge's James Dawson will be serving as a speaker and moderator in the Advanced Sales & Use Tax Seminar on March 14-16. The three-day seminar will cover a myriad of topics at the intersection of the tax and legal spaces, including Mr. Dawson's session (details included below). 

Digital Taxes, Part I: Taxing the Digital Economy: A Journey into the (Un)Known

As the digital economy continues to expand, state and local governments are looking for ways to capture what they perceive to be lost tax revenues from online and digital activities that are not subject to current, traditional state tax statutes.  Maryland became the first state to enact legislation imposing a tax on certain digital advertising revenues, with an effective date of January 1, 2022.  Taxpayers immediately challenged the Maryland tax in both federal and state courts.  States throughout the nation are closely monitoring those challenges, while also considering similar targeted taxes of their own.  Speakers will first explore the recently enacted Maryland Digital Advertising Tax and the status of court cases challenging the tax. Second, speakers will discuss the myriad of legal issues these taxes create – including numerous constitutional issues and sourcing issues.  Speakers will then explore similar targeted taxes that have been enacted by state and local governments.

Learning Objectives

By attending this session, the participant will be able to:

• Explain the new Maryland Digital Ads Tax and the legal challenges initiated by taxpayers and trade associations, whose members are subject to the Digital Ads Tax.
• Identify the constitutional and other legal challenges that the taxpayers and state and local governments face when enacting targeted taxes.
• Recall targeted and similar taxes that have been enacted or are being considered by state and local governments.
• Identify trends in the enactment of targeted taxes.

Moderator/Speaker:

James W. Dawson, Jr., Esq.
Principal
Miles & Stockbridge P.C.
Rockville, MD

Speakers:

Jennifer W. Karpchuk, Esq.
Shareholder
Chamberlain Hrdlicka

Michael Semes
Of Counsel
BakerHostetler

Lindsay C. McAfee
Deloitte Tax LLP
Senior Manager, Multistate Tax Services