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MarylandHB 09332026 Regular SessionHouse

Sales and Use Tax - Certificates Indicating Multiple Points of Use - Alterations

Sponsored By: Jheanelle K. Wilkins (Democratic)

Signed by Governor

Taxes - Sales and UseAddressesApplicants and ApplicationsCertificationsCommerce and Business -see also- ElectrComm; ForeignTr; etc.ComptrollerDigital Products -see also- Digital ImagesElectronic GovernmentFormsFraud -see also- ForgeryGoods and Services -see also- Retail Sales; TermnSvc; TrfGdsNamesNegligence -see also- Medical MalpracticeNoticesRegistration -see also- Motor Vehicle RegistrationSales and Use TaxTimeTransfer of Goods -see also- Goods&Svc; Leas&Rnt; RetailSale

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Businesses need approval for tax certificates

Businesses can get Maryland approval to issue multiple-use tax certificates after registering for a sales and use tax account. They must pay all undisputed taxes or arrange an accepted payment plan. Approval lasts at least two years unless suspended or revoked; renewal applications open 90 days before expiration. The Comptroller can deny, suspend, revoke, or refuse to renew approval for fraud, gross negligence, certificate misuse, unpaid undisputed taxes, or similar reasonable causes. After revocation, the buyer must list vendors that received certificates, and the Comptroller must notify them when those certificates become void.

Certified businesses handle their own purchase taxes

The law takes effect January 1, 2027, and applies retroactively to retail sales or uses from July 1, 2025. Approved buyers can give vendors certificates at or before buying covered digital codes, digital products, or taxable services. Buyers must know the purchase will be available for use in multiple tax areas or resold unchanged within their affiliated or related business group. Related pass-through entities must share a parent holding at least 80% of voting power and value. An active certificate covers future purchases from that vendor and shifts tax responsibility from the vendor to the buyer. Buyers can divide taxable use across tax areas using a reasonable, consistent, uniform method backed by records held at sale. That method must accurately reflect the main use location in Maryland. For covered related-business resales, the reseller owes Maryland tax if the end user does not pay; payment clears that portion of the end user's obligation. The end user owes additional tax if a later resale price exceeds the price already taxed. Vendors resume tax duties for later sales after receiving a withdrawal notice or learning, or having reason to know, that approval was revoked.

Sponsors & Cosponsors

Sponsor

  • Jheanelle K. Wilkins

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 162 • No: 0

Senate vote • 4/13/2026

Third Reading Passed

Yes: 35 • No: 0 • Other: 12

House vote • 3/21/2026

Third Reading Passed

Yes: 127 • No: 0 • Other: 7

Actions Timeline

  1. Approved by the Governor - Chapter 198

    4/28/2026

  2. Returned Passed

    4/13/2026House

  3. Third Reading Passed (35-0)

    4/13/2026Senate

  4. Motion Special Order until 4/10 (Senator Harris) Adopted

    4/9/2026Senate

  5. Second Reading Passed

    4/8/2026Senate

  6. Favorable Adopted

    4/8/2026Senate

  7. Favorable Report by Budget and Taxation

    4/8/2026Senate

  8. Hearing 3/31 at 1:00 p.m.

    3/25/2026Senate

  9. Referred Budget and Taxation

    3/23/2026Senate

  10. Third Reading Passed (127-0)

    3/21/2026House

  11. Second Reading Passed with Amendments

    3/20/2026House

  12. Favorable with Amendments {883323/1 Adopted

    3/20/2026House

  13. Favorable with Amendments Report by Ways and Means

    3/20/2026House

  14. Hearing 2/26 at 1:00 p.m.

    2/5/2026House

  15. First Reading Ways and Means

    2/5/2026House

Bill Text

  • Enacted

    4/28/2026

    PDF

  • Third Reading

    3/20/2026

    PDF

  • First Reading

    2/5/2026

    PDF

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