Maryland Digital Ad Tax Declared Unconstitutional

A Maryland state tax court has struck down the state's first-in-the-nation digital advertising tax, ordering refunds to Apple, Google, and Peacock TV. The tax court ruled that the law violates federal regulations and constitutional clauses related to free speech, interstate commerce, and due process.

The tax was introduced in 2021 and could have raised up to $250 million annually for education funding. Companies making over $100 million in global revenue were taxed at a 2.5% rate, increasing to 10% for those with more than $15 billion in annual revenue.

Last year's ruling by the 4th U.S. Circuit Court of Appeals found that part of the law infringed on Big Tech companies' right to free speech by blocking them from informing customers about the tax.