Maryland Tax Court Voids Digital Ad Tax, Orders Refunds

A Maryland state tax court has struck down the state's first-in-the-nation digital advertising tax, ruling it unconstitutional.

The tax, which was approved in 2021 and estimated to raise around $250 million a year, targeted large companies making more than $100 million in global annual gross revenues.

The tax court ordered the state to repay Apple, Google, and Peacock TV for the taxes already collected under this law. The court found that the tax violates both the federal Internet Tax Freedom Act and the First Amendment of the US Constitution.