Maryland Tax Court Voids Digital ad Tax, Orders Refunds to Apple, Google and Peacock TV
The ruling requires Maryland to return more than $400 million collected under the 2021 tax, which targeted large tech companies.
- On Friday, the Maryland Tax Court struck down the state's digital advertising tax, ordering refunds to Apple, Google, and Peacock TV for taxes collected under the unconstitutional law.
- Enacted in 2021 to fund the Blueprint for Maryland's Future, the Digital Advertising Gross Revenues Tax targeted companies with at least $100 million in global revenue at graduated rates from 2.5% to 10%.
- The court found the tax violates the 1998 Internet Tax Freedom Act by discriminating against digital advertising while not taxing similar print, billboard, or television ads equally.
- Comptroller Brooke Lierman and legislative leaders said they "respectfully disagree" with the ruling and will pursue judicial review by the circuit court within 30 days.
- Policymakers in Illinois and Utah, which adopted similar taxes this year, are monitoring the decision closely as legal experts expect other states will face identical constitutional challenges.
22 Articles
22 Articles
Maryland tax court voids digital ad tax, orders refunds to Apple, Google and Peacock TV
A Maryland state tax court has struck down the state’s tax on digital advertising. The court says the tax violates the federal Internet Tax Freedom Act and parts of the U.S.
Maryland Tax Court Strikes Down State Digital Advertising Tax
Maryland’s first-in-the-nation tax on digital advertising has been struck down by the Maryland Tax Court, creating uncertainty over hundreds of millions of dollars collected by the state and revenue intended for public education. The court ruled on August 14th that the Digital Advertising Gross Revenues Tax violates the federal Internet Tax Freedom Act, which limits discriminatory taxation of internet commerce. The court found Maryland was impro…
Maryland’s tax on digital advertising by tech giants struck down in court
The tax, first approved in 2020, is designed to raise hundreds of millions of dollars for public schools by taxing Big Tech for ads that follow Marylanders around as they peruse social media platforms, websites and streaming services.
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