Maryland lawmakers are considering a tax on advertising and other business-to-business services, a move that would have severe consequences for agencies, businesses, and the broader state economy.
Two bills, House Bill 1554 (HB 1554) and Senate Bill 1045 (SB 1045), are scheduled for hearings on Wednesday, March 12 at the Maryland State House in Annapolis. The House Ways and Means Committee will hold its hearing at 1:00 PM, followed by the Senate Budget and Taxation Committee at 3:00 PM.
If passed, this tax will increase costs for businesses, reduce advertising budgets, lead to job losses, and shift business to neighboring states with no such tax.
Why This Tax is Bad for Maryland
A tax on advertising isn’t just bad for agencies—it’s bad for every business and consumer in Maryland. Advertising is a key driver of economic growth, and history has shown that taxing it hurts local businesses and reduces state revenue instead of increasing it.
Advertising fuels Maryland’s economy – It generates $93.8 billion in economic activity and supports 469,546 jobs (17% of all jobs in the state).
Advertising drives job creation – For every one job in advertising, 27 jobs are supported across multiple industries in Maryland.
A tax would devastate businesses – Less advertising means fewer sales, fewer jobs, and lower state tax revenue.
Border states will benefit at Maryland’s expense – Advertisers will shift budgets to Pennsylvania, Virginia, and Delaware, just as they did when Florida attempted a similar tax in 1987.
The Florida Disaster – When Florida passed an ad tax, advertising spending dropped 12 percent, local media lost millions, and the tax was repealed in just six months due to its economic damage.
Advertising is a national economic engine – In 2024, ad-related spending supported nearly 20 percent of U.S. GDP. Every dollar spent on advertising multiplies across the economy, driving growth, supplier purchases, and lower consumer prices.
For more insights into the economic impact of advertising in Maryland, download the Ad Coalition’s Maryland Advertising Impact Report:
What AAF is Doing & How You Can Help
AAF will be testifying against these bills, and we strongly encourage other members of the Maryland advertising community to join us in Annapolis to oppose this harmful legislation.
Join Us in Annapolis
Your presence makes a difference. The hearings are scheduled for Wednesday, March 12, at 1:00 PM and 3:00 PM at the Maryland State House. If you can attend, please let us know.
Call & Email Your Legislators
Tell them this tax will hurt Maryland businesses, reduce jobs, and lower tax revenue.
Find your representatives here: Maryland General Assembly Members
Spread the Word
Share this information with colleagues, clients, and industry peers. Every voice matters.
Act Now to Protect Maryland’s Advertising Industry
The proposed advertising tax threatens businesses, jobs, and economic growth in Maryland. If enacted, it will drive revenue out of the state, reduce advertising investment, and negatively impact industries that rely on advertising to reach consumers.
Now is the time to take action. If you plan to testify or have received responses from your representatives, please let us know.
By working together, we can advocate for policies that support Maryland’s advertising industry and ensure a stronger economic future.
For Questions or to Confirm Your Attendance, Contact:
Ronaldo Sellers
Government Relations Chair, AAF Baltimore
Kathe Flynn
President, AAF Baltimore