Maryland Tax Court Voids 10% Digital Ad Tax, Orders Repayment
Updated
Updated · Boston Herald · Aug 15
Maryland Tax Court Voids 10% Digital Ad Tax, Orders Repayment
3 articles · Updated · Boston Herald · Aug 15
Summary
Maryland’s tax court struck down the state’s first-in-the-nation digital advertising tax and ordered officials to refund money already collected from Apple, Google and Peacock TV.
The ruling said the levy violated the federal Internet Tax Freedom Act, the First Amendment, and the Constitution’s commerce and due process clauses because it taxed online ads differently and relied on global revenue.
The 2021 law targeted companies with more than $100 million in annual global revenue, starting at 2.5% and rising to 10% for firms above $15 billion; Maryland had projected about $250 million a year for K-12 education.
State legislative leaders said they respectfully disagree and expect the case to continue through the courts, extending a closely watched fight over whether states can tax digital advertising.