By Saleem A. Shareef
On May 20, 2025, Maryland Governor Wes Moore signed legislation that establishes the process for appealing assessments for the digital advertising gross revenues tax. (L. 2025, H546 (c. 677); L. 2025, S605 (c. 678), effective 01/01/2026 and applicable to assessments of the digital advertising gross revenues tax made after 12/31/2025.)
Existing appeals process.
The digital advertising gross revenues tax is subject to the existing appeals provisions already applicable to taxes administered by the Maryland Comptroller including the: admissions and amusement, alcoholic beverage, boxing and wrestling, income, motor carrier, motor fuel, public service company franchise, financial institution franchise, sales and use tax, and tobacco taxes. Within 30 days after the date on which a notice of assessment of the tax is mailed, a person or governmental unit against which the assessment is made can submit to the tax collector: (1) an application for revision of the assessment; or (2) if the assessment is paid, a claim for refund. If a person or governmental unit fails to submit an application for revision or claim for refund within the time allowed, the assessment becomes final. The comptroller must promptly hold an informal hearing on the application for revision or claim for refund. After the hearing, the comptroller must act on the application for revision and can assess any additional tax, penalty, and interest due. The comptroller must mail to the person or governmental unit a notice of final determination.
Order to correct.
Notwithstanding a person’s failure to file a timely application for revision or claim for refund, the comptroller can issue an order decreasing or abating an assessment to correct an erroneous assessment. If an order is made, the order must state clearly the reasons for decreasing or abating the assessment. An order issued by the comptroller is final and not subject to appeal. The comptroller’s refusal to enter an order is final and not subject to appeal.
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