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…
Maryland's state tax court has invalidated the state's initial digital advertising tax and ordered a refund of the funds collected from major tech companies, including Apple, Google, and Peacock TV. The court ruled that the tax infringes upon the federal Internet Tax Freedom Act, as well as the First Amendment and the U.S. Constitution's commerce and due process clauses.
The Maryland Tax Court determined that the tax was unlawful and ordered the state to return the collected tax money to the affected companies. The proposed tax was to generate around $250 million annually to fund a comprehensive K-12 education initiative. The ruling has prompted a response from state lawmakers, who expressed disagreement with the decision and indicated that the matter will continue to be addressed through the legal process.
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