Maryland Tax Court Invalidates Digital Ad Tax, Mandates Refunds for Apple, Google, and Peacock TV

POLICY WIRE — Annapolis, Maryland — The Maryland Tax Court has invalidated the state’s digital advertising tax, ordering refunds for major tech companies including Apple, Google, and Peacock TV. The court ruled that the tax, which targeted digital ad revenues, was unconstitutional.

The decision comes after legal challenges from the affected companies, who argued that the tax infringed upon their constitutional rights. The court agreed, stating that the tax imposed an undue burden on interstate commerce.

“The digital advertising tax was deemed unconstitutional as it unfairly targeted out-of-state companies,” said Judge Mary Thompson, presiding over the case. “Refunds must be issued to comply with constitutional standards.”

Apple, Google, and Peacock TV have collectively paid millions in taxes since the legislation was enacted. The court’s ruling mandates the Maryland Department of Assessments and Taxation to process refunds promptly.

This ruling is expected to have broader implications for other states considering similar taxes on digital services. Industry experts predict that other states may reconsider their tax policies in light of this decision.

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Reporting by Policy-Wire (PW)