Potential Taxes Threatened with Constitutional Challenge for Infringing upon First and Second Amendment Rights
In recent years, several states have implemented new tax measures, sparking debates and legal challenges. Two notable examples are Maryland's digital advertising tax and Colorado's gun tax.
Over the past seven months, a dozen states have passed additional state income tax relief, but the focus has shifted to two controversial taxes: Maryland's digital advertising tax and Colorado's gun tax.
Maryland enacted the nation's first digital advertising tax in 2021, prompting multiple lawsuits to overturn it. A circuit court judge in Anne Arundel County ruled in favor of Comcast, deeming the tax a violation of the U.S. Constitution's Commerce Clause and the federal Internet Tax Freedom Act. As of late July 2025, the digital advertising tax is under active judicial review for possible federal law violations, with hearings led by Chief Judge Anthony C. Wisniewski ongoing.
In contrast, Colorado's Proposition KK, a ballot measure that imposes a 6.5% state excise tax on firearms and ammunition purchases, was approved by 54% of voters in the 2024 general election. The new tax has faced criticism from gun rights advocates, with Huey Laugesen, executive director of the Colorado State Shooting Association, stating that Proposition KK threatens legal commerce, punishes responsible gun owners, and imposes costly burdens on small businesses across the state without improving public safety.
In April 2022, a lawsuit was filed against Colorado's Department of Revenue, arguing that the new gun tax is a violation of the Second Amendment to the U.S. Constitution. However, as of now, there is no information available on the status of this lawsuit or any other legal challenges regarding Colorado's gun tax.
California's gun tax is also under legal scrutiny. In 2023, Governor Gavin Newsom signed legislation imposing an 11% excise tax on firearms and ammunition sales, leading to two lawsuits seeking to overturn the tax.
Meanwhile, the U.S. Chamber of Commerce, the Internet Association, NetChoice, and the Computer & Communications Industry Association (CCIA) have also filed a federal lawsuit against Maryland's digital tax, challenging the "pass-through prohibition" included in the legislation.
The debate surrounding these tax measures highlights the complexities of balancing public policy, taxation, and constitutional rights in the United States. While some argue these taxes provide funding for important government programmes, critics contend they are regressive taxes that disproportionately harm low-income households and infringe upon constitutional rights.
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- In the midst of several states adapting new tax policies and driving debates on constitutional rights, both the digital advertising tax in Maryland and the gun tax in Colorado have been under legal scrutiny.
- The debate on contentious taxes such as Maryland's digital advertising tax and Colorado's gun tax reflects the intricate balance between public policy, taxation, and constitutional rights in the United States, with some advocating for funding government programs, while others argue these taxes regressively impact low-income households and infringe upon constitutional rights.
