Maryland tax on digital ads violated Big Tech’s free speech, judges say
By BRIAN WITTE
ANNAPOLIS, Md. (AP) — Maryland’s first-in-the-nation tax on digital advertising violated the Constitution, a federal appeals court says, because blocking Big Tech from telling customers about the tax violates the companies’ right to free speech.
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Supporters say Maryland needed to overhaul its tax methods in response to significant changes in how businesses advertise. The tax focuses on large companies that make money advertising on the internet such as Meta, Google and Amazon, who say they’re being unfairly targeted.
The ongoing legal fight is being watched by other states that are considering taxes for online ads. Maryland estimated the tax could raise about $250 million a year to help pay for a sweeping K-12 education measure.