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Groups file court challenge of Maryland's internet ad tax

The plaintiffs include the U.S. Chamber of Commerce, the Internet Association, NetChoice, and the Computer and Communications Industry Association.
Credit: AP
FILE - In this April 14, 2020, file photo, the thumbs up Like logo is shown on a sign at Facebook headquarters in Menlo Park, Calif. Maryland's first-in-the-nation law taxing digital advertising by Big Tech companies like Facebook and Google is being challenged in federal court as “a punitive assault" on digital advertising and should be struck down, according to a federal lawsuit filed Thursday, Feb. 18, 2021, by leading trade associations. (AP Photo/Jeff Chiu, File)

ANNAPOLIS, Md. — Leading national trade associations have filed a federal lawsuit challenging Maryland's first-in-the-nation tax on internet ads. 

The groups filed the lawsuit Thursday in U.S. District Court in Baltimore. 

The plaintiffs include the U.S. Chamber of Commerce, the Internet Association, NetChoice, and the Computer and Communications Industry Association. 

Michael Kimberly is the lead attorney for the plaintiffs. He says the law is a clear violation of federal statutory and constitutional principals. 

The lawsuit alleges that the law violates the federal Internet Tax Freedom Act. 

The Maryland General Assembly overrode Gov. Larry Hogan's veto of the legislation last week.