Digital ad sales tax struck down by court

A first-of-its-kind state tax on some digital ads, worth an estimated $250 million a year to the state, was struck down Friday as a violation of the federal Internet Tax Freedom Act by the Maryland Tax Court. The law had been challenged by Apple, Google and Peacock TV.

By: Bryan P. Sears

Outlets: Maryland Matters

Published: August 14, 2026

Words: 1,185

Last Updated: 3 days, 12 hours ago

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A first-of-its-kind state tax on some digital ads has been struck down as a violation of the federal Internet Tax Freedom Act by the Maryland Tax Court.

The decision issued Friday morning was in response to three legal challenges filed by Apple, Google and Peacock TV, a streaming service.

“In the context of the ITFA (Internet Tax Freedom Act) … the Court reasons that Congress could not have been any clearer that it did not …

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