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Maryland Court of Appeals Rejects First Amendment Challenge to Local Tax on Outdoor Advertising Services | Pillsbury - SeeSalt Blog


On February 15, 2021, the Maryland Court of Appeals issued a decision in
Clear Channel Outdoor, Inc. v. Director, Department of Finance of Baltimore City, Case No. 24-C-18-001778 (Md. 2021), upholding the constitutionality of a local ordinance that imposes an annual excise tax on businesses selling advertising space on off-site billboards.  The tax in question applies only to businesses own or control off-site billboards in the City of Baltimore i.e., billboards that are
not located on the premises where the goods or services being advertised are offered for sale.   
Clear Channel Outdoor, Inc. (Clear Channel) initiated a refund action in Maryland Tax Court on the grounds that the ordinance impermissibly regulated commercial speech in violation of the First Amendment and the Maryland Declaration of Rights Article 40.  Clear Channel argued that the tax is subject to heightened scrutiny under the U.S. and Maryland constitutions because it implicates freedom of spee ....

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