On August 14, the Maryland Tax Court struck down the state’s Digital Advertising Gross Revenues Tax, enacted in 2020. Across multiple rulings, the court found the tax unlawful and unconstitutional, violating the Internet Tax Freedom Act, the Dormant Commerce Clause, the Due Process Clause, and the First Amendment. The order directs the State Treasurer to refund all associated revenue accrued since the legislation’s passage in 2020.
This decision may strengthen ongoing legal challenges to Utah’s Targeted Advertising Tax, amended in 2026, and Washington’s 2026 expansion of its excise tax to include some online and digital advertising services.
The News/Media Alliance maintains that taxes on advertising are bad public policy and harmful to the economy, and will continue to advocate before other state legislatures that advertising revenue is a vital lifeline for publishers providing high-quality journalism to their communities.
