PRIA Logo™
MarylandSB 06442026 Regular SessionSenate

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

Sponsored By: Nancy J. King (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

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Businesses need approval for multiple-use tax certificates

Beginning January 1, 2027, buyers need a Maryland sales tax account and Comptroller approval to issue multiple-use tax certificates. They must pay all undisputed taxes or arrange payment accepted by the responsible tax office. Approval lasts at least 2 years unless suspended or revoked. Buyers can apply to renew only within 90 days before approval expires. The Comptroller can deny approval or renewal, or revoke approval, for fraud, gross negligence, certificate misuse, overdue undisputed taxes, or similar reasonable cause.

Businesses divide sales tax but retain liability

Beginning January 1, 2027, approved buyers can give vendors certificates for qualifying digital codes, digital products, and taxable services. Items must be used in multiple tax areas at once or resold unchanged to an affiliated business or related pass-through entity. Buyers must provide certificates by purchase; they cover later purchases until canceled or the vendor receives notice, knows, or should know approval was revoked. After notice that a certificate is void, vendors must collect or pay and remit tax on later sales. Buyers can divide tax using a reasonable, consistent, uniform method backed by records available at sale and reflecting primary use in Maryland. For covered resales to related businesses, the reseller must pay the Maryland portion or remains liable for unpaid tax. The end user owes extra tax if the resale price exceeds the price already taxed.

Sponsors & Cosponsors

Sponsor

  • Nancy J. King

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 180 • No: 0

House vote • 4/13/2026

Third Reading Passed

Yes: 137 • No: 0 • Other: 3

Senate vote • 4/8/2026

Third Reading Passed

Yes: 43 • No: 0 • Other: 3

Actions Timeline

  1. Approved by the Governor - Chapter 197

    4/28/2026

  2. Returned Passed

    4/13/2026Senate

  3. Third Reading Passed (137-0)

    4/13/2026House

  4. Favorable Adopted Second Reading Passed

    4/11/2026House

  5. Favorable Report by Ways and Means

    4/11/2026House

  6. Rereferred to Ways and Means

    4/9/2026House

  7. Referred Rules and Executive Nominations

    4/8/2026House

  8. Third Reading Passed (43-0)

    4/8/2026Senate

  9. Second Reading Passed with Amendments

    4/7/2026Senate

  10. Favorable with Amendments {193721/1 Adopted

    4/7/2026Senate

  11. Favorable with Amendments Report by Budget and Taxation

    4/7/2026Senate

  12. Hearing 3/04 at 1:00 p.m.

    2/11/2026Senate

  13. First Reading Budget and Taxation

    2/6/2026Senate

Bill Text

  • Enacted

    4/28/2026

    PDF

  • Third Reading

    4/7/2026

    PDF

  • First Reading

    2/6/2026

    PDF

Related Bills

Back to State Legislation