Maryland tax court voids digital ad tax, orders refunds to Apple, Google and Peacock TV
ANNAPOLIS, Md. (AP) — A Maryland state tax court has struck down the state’s first-in-the-nation tax on digital advertising and ordered state officials to repay the tax money already collected from big tech firms. The Maryland Tax Court said the…
The Maryland state tax court has invalidated the state's first-in-the-nation tax on digital advertising, ordering the repayment of collected taxes to tech giants such as Apple, Google, and Peacock TV. The court ruled that the tax, approved in 2021, violates the federal Internet Tax Freedom Act and the First Amendment, as well as the commerce and due process clauses of the U.S. Constitution.
The tax, estimated to generate around $250 million annually, was intended to fund a comprehensive K-12 education initiative. However, the decision has sparked controversy, with supporters arguing that the state needed to adapt its tax methods due to the evolving nature of digital advertising.
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