Friday Five
Aug. 21, 2026 | This week's latest on Maryland business and government
1 — Maryland court strikes down first-of-its-kind digital ad tax
A Maryland Tax Court has struck down the state’s digital advertising tax, ruling that it violates the federal Internet Tax Freedom Act because Maryland does not impose a comparable tax on traditional advertising. The decision requires the state to refund roughly $535.5 million collected under the tax, plus interest, although Comptroller Brooke Lierman has indicated the state may appeal.
One question remains: How will Maryland address its long-term fiscal challenges in a way that strengthens rather than further burdens its economy? We can continue responding to fiscal pressures by increasing costs on a shrinking tax base, or focus on creating the conditions for that tax base to grow.
2 — Poll: Utility costs, the economy, taxes top of mind for voters
A new poll finds Maryland voters are most concerned about rising utility costs, the economy and taxes, with many expressing worries about affordability and the state’s fiscal outlook. The survey also found majority support for raising taxes on wealthy households as a way to address budget challenges, while voters remain divided over other potential revenue options.
Latest rankings: Marylanders have the right to be worried. Our state scored 49th out of 50 for economy in CNBC's 2026 Top States for Business.
3 — Greenbelt back as next home for FBI, after court rejects ‘unlawful’ plan to stay in D.C.
A federal judge has rejected the Trump administration’s effort to keep the FBI headquarters in downtown Washington, D.C., ruling that the decision to reverse the previously selected Greenbelt, Md. site was unlawful. The ruling puts Greenbelt back in line to become the FBI’s new headquarters, potentially bringing thousands of federal jobs and significant economic activity to Prince George’s County, though the federal government is expected to appeal.
Why it matters: An FBI headquarters in Greenbelt represents a major potential economic-development win for Maryland at a time when the state must be focused on improving its competitiveness, attracting investment and creating jobs.
4 — County leaders look for options as budgets get tighter
Maryland county leaders are facing increasingly tight budgets as slower revenue growth, rising costs and state funding pressures force them to consider difficult choices, including spending cuts, tax increases and reductions in services. Local officials warn that continued fiscal strain could make it harder to maintain essential services and invest in schools, public safety and infrastructure while balancing already-constrained budgets.
Quoted: “What we’re struggling with now is a state government that continually pushes down their liabilities and responsibilities to us,” said Talbot County Finance Director Martha Sparks. “Those things that we don’t have any control over: the blueprint... That’s what the state needs to do, not raise revenue to pay their bills.”
5 — Counties scramble to respond to data centers, setting moratoriums, a ban
Maryland counties are taking different approaches to the rapid growth of data centers, with some imposing temporary moratoriums or outright bans while officials assess their potential impacts on land use, energy demand, water resources and local infrastructure. The debate reflects growing tension between the economic development and investment opportunities data centers can bring and concerns about the costs and long-term effects on communities.
In terms of energy: Maryland’s participation in the regional PJM grid means data center growth anywhere in the 13-state region can affect Maryland ratepayers. Limiting development here will not eliminate those pressures, underscoring the need for a coordinated approach to expand generation alongside new demand.
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The Maryland Chamber of Commerce is the state’s leading business advocacy organization — committed to working with our alliance of partners on critical public policy issues. With a focus on economic development and grassroots advocacy, we impact policies that directly affect Maryland business.
