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2 clusters · 10 sources · 3 days · First seen · Last updated

Maryland digital advertising tax legal challenge

Overview

The Maryland Tax Court has struck down the state’s digital advertising tax, ruling it unconstitutional under federal law. The court determined the tax violated the Internet Tax Freedom Act, the Commerce Clause, and the Due Process Clause by discriminating against e-commerce and failing to tax similar offline mediums like billboards, television, and newspapers.

Enacted in 2021 following a legislative override of a gubernatorial veto, the tax targeted large technology companies with more than $100 million in annual global revenue. The revenue, totaling over $400 million, was earmarked for the ‘Blueprint for Maryland’s Future,’ an education funding plan. The legal challenges were brought by companies including Apple, Google, and Peacock TV.

The ruling orders the state to refund collected taxes plus interest to taxpayers. Maryland Comptroller Brooke Lierman expressed disagreement with the decision, stating the law ensures large tech companies pay their fair share to support public schools, and indicated a potential appeal. The decision poses a significant financial challenge to the Blueprint program and is being monitored by other states considering similar legislation.

Entities

Maryland Tax Court · Google · Blueprint for Maryland’s Future · Apple · Maryland

Timeline

  1. 28 days ago

    [BUSINESS] 4 sources
    Maryland digital advertising tax struck down by court

    A Maryland Tax Court ruled that the state’s digital advertising tax violates the federal Internet Tax Freedom Act, ordering refunds to Apple, Google, and Peacock TV and threatening education funding.

  2. about 1 month ago

    [BUSINESS] 6 sources
    Maryland Tax Court strikes down digital advertising tax

    Maryland’s Tax Court has ruled its digital advertising tax unconstitutional, violating the Internet Tax Freedom Act. The state may now be required to refund over $400 million in collected taxes.

Sources

conduitstreet.mdcounties.org · liveblog.wtop.com · minrol.gov.pl · mymotherlode.com · southernmarylandchronicle.com · srnnews.com · taxfoundation.org · thebaynet.com · thepenobscottimes.com · wgmd.com