The Maryland Tax Court has struck down the state’s first-of-its-kind digital ad sales tax as a violation of the federal Internet Tax Freedom Act.  Maryland has been ordered to refund taxes collected plus interest.

Under the law,  companies with annual revenues of $100 million are taxed 2.5%, increasing up to 10% for companies with $15 billion in gross global revenue.  Maryland has collected over $400 million for the tax, with the money earmarked for the Blueprint for Maryland’s Future education program.