The Maryland Supreme Court revived a digital advertising tax on tech companies this week, reversing a lower court ruling last year that found the measure unconstitutional.

In a four-page ruling on Tuesday, Maryland’s highest court said the Anne Arundel County Circuit Court “lacked jurisdiction” when it ruled to overturn the tax last year, and sent the case back to the circuit court to be dismissed. A full rationale will be fleshed out in a later opinion, according to the court’s filing.

The decision means that Maryland may resume its tax on the sale of online ads — a measure passed by the state’s General Assembly in 2021. It levied a tax of between 2.5% and 10% on large companies like Facebook and Google that sell online advertisements. The tax was the first of its kind in the country. The tax would only apply to companies making at least $100 million a year globally from advertisements, and would only pay taxes on the amount of advertising done in Maryland. Proponents of the tax argued it was a necessary step in modernizing the state’s tax code. When it passed, lawmakers expected the tax to bring in roughly $250 million per year, which would be used to fund a massive overhaul of the state’s public education system.

Meanwhile, the tax drew criticism from tech companies and former Gov. Larry Hogan, who vetoed the bill (before the legislature overrode it), arguing it could have a negative effect on local businesses if big companies kicked the cost of the tax onto them. In 2021, several companies — including Comcast and Verizon — filed a lawsuit to block the tax, and last fall an Anne Arundel County Circuit Court judge sided with the companies, ruling that the tax violated the First Amendment and the federal Internet Tax Freedom Act by discriminating against e-commerce companies with a digital-only tax.

While the Maryland Supreme Court ruling would reinstate the tax, another challenge is working its way through the federal appeals court. According to the Baltimore Banner, in the short time that it was in effect, the tax collected a $92.4 million net total.

D.C. tried to implement its own digital ad tax as well — the D.C. Council passed a 3% tax on the sale of advertisements and personal data in 2020, but later killed the provision. Across the country, most attempts to implement the taxes have been challenged with First Amendment arguments. Several states across the country have introduced legislation to create a tax, but none besides Maryland have gone as far as passing one.