Maryland Tax Court Strikes Down Digital Advertising Tax

A Maryland state tax court has ruled that the state's digital advertising tax is unconstitutional. The court voided the tax and ordered state officials to repay the money collected from big tech firms, including Apple, Google, and Peacock TV.

The Maryland Tax Court cited the federal Internet Tax Freedom Act as well as the First Amendment and the commerce and due process clauses of the U.S. Constitution in its decision.

This ruling is significant for big tech companies that have been subject to this tax since 2020, with a reported $250 million collected from them so far.