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Sales tax and VAT updates for modern finance teams

Anrok’s team of tax experts shares the latest rate changes, taxability updates, and other news you need to know.

Maryland

Maryland's digital ad tax faces federal law challenge in court hearings

July 28, 2025

Maryland Tax Court concluded evidentiary hearings on July 29 in Apple and Google's challenge to the state's Digital Ad Revenue Tax under the federal Internet Tax Freedom Act. Apple argued that adding "programmatic" features doesn't make digital ads dissimilar to non-digital ads, while Maryland's expert testified that digital ads' automation and targeting capabilities make them fundamentally different. Maryland also issued Technical Bulletin No. 59 applying retroactively to tax year 2022.

The bottom line: The court's ruling on whether Maryland's 2.5% to 10% tax on digital ad revenue violates federal anti-discrimination law could determine if other states can implement similar taxes targeting tech companies with over $100 million in annual revenue.

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