Comment Read the actual legislative text (Score 1) 79
The full lifecycle and text of this bill can be found here: https://mgaleg.maryland.gov/mgawebsite/legislation/details/hb0732?ys=2020rs
First off: The digital advertising tax wasn't originally in the bill. Legislators co-opted a bill taxing tobacco products and added the digital ad language almost a month after the text was first introduced.
Second: There had been news reports that legislators were going to add language to prohibit pass-through of the tax to ad buyers. maryland.gov doesn't show any introduced amendment proposing that and that's not part of the final text. So based on the bill text, Google et al. could charge customers a "MD Digital Advertising Recovery Fee", unless there's a separate law prohibiting something like that. Directly passing a sliding-scale, revenue-based tax would be difficult unless a firm knew they were $100m+ in revenue.
Third: The text seems to force all companies that sell at least $1m of digital ads in the state to file paperwork (e.g. tax returns) even if they don't meet the gross revenue minimum of $100m. I'm thinking a medium-sized ad firm based in MD, does a few million annually in digital ads and they have $5m in total revenue. They don't owe tax but they still have to file supporting paperwork to show they don't owe for the digital tax. One would think this is the loophole, like Irish and Dutch-domiciled holding companies.