The 3% tax on IT, data and software publishing services in Maryland, set to generate about $110 million in its first year, down from nearly $500 million initially forecasted, according to state officials. The tax, which was approved last year to close a $3.3 billion structural budget gap, produced just $35 million in the first half of fiscal year 2026. The state's Board of Revenue Estimates (BRE) has revised its sales tax forecast for fiscal 2027, contributing to a $108 million drop in overall revenue. However, an unexpected surge in estate tax collections has largely offset the loss, leaving the state projecting a $355 million surplus. The reasons behind the tax's muted earnings remain unclear.