Maryland Tax Court Strikes Down State's Digital Advertising Tax, Raising Fiscal Concerns
The Maryland Tax Court has ruled against the state's first-in-the-nation digital advertising tax, enacted in 2021, stating it violates the federal Internet Tax Freedom Act and several provisions of the U.S. Constitution, including the Commerce Clause, Due Process Clause, and First Amendment. This ruling came from cases brought by major tech companies like Apple, Google, and Peacock TV. The tax, which applied to large companies selling digital advertising in Maryland with rates ranging from 2.5% to 10% based on global annual revenue, was intended to fund the 'Blueprint for Maryland's Future,' the state's comprehensive education reform plan. Economist Anirban Basu noted that $535 million has already been collected through this tax, and the state now faces the possibility of returning these funds, depending on the outcome of potential appeals. 
