Maryland's Senate Bill 605, introduced on March 13, 2025, aims to streamline the process for revising tax assessments, particularly focusing on the newly established Digital Advertising Gross Revenues Tax. This legislation allows the Comptroller or their designee to issue orders that can decrease or abate tax assessments, even if a taxpayer has missed the deadline for filing a revision or refund claim.

Key provisions of the bill include the requirement for the Comptroller to hold an informal hearing before making a final determination on a revision application. Following this hearing, the Comptroller can assess any additional taxes, penalties, or interest due, ensuring that taxpayers are informed of their obligations. Importantly, any order issued under this bill will be final and not subject to appeal, which has sparked discussions among stakeholders regarding taxpayer rights and the implications of such finality.

The introduction of the Digital Advertising Gross Revenues Tax is a significant move, reflecting the growing recognition of digital advertising as a revenue source. This tax is expected to impact businesses operating in the digital space, potentially leading to increased compliance costs. Critics of the bill have raised concerns about the lack of appeal options, arguing that it could lead to unjust assessments without recourse for taxpayers.

As the bill is set to take effect on January 1, 2026, it will apply to assessments made after December 31, 2025. The implications of this legislation are substantial, as it not only alters the landscape of tax assessment in Maryland but also sets a precedent for how digital revenues are taxed in the future. Stakeholders are closely monitoring the bill's progress, anticipating its potential effects on both state revenue and the digital economy.