Subtitle 06 SALES AND USE TAX › Chapter 01 Sales and Use Tax

.01 Personal, Professional, or Insurance Services. A. Except for taxable services set forth in Tax-General Article, §11-101(m), Annotated Code of Maryland, the tax does not apply to a personal, professional, or insurance service that involves a sale as an inconsequential element …

.02 Combined Sales. A. General. A vendor shall compute and impose the tax on the total taxable price of all sales to a buyer in the same licensed business location on the same business day, whether or not at different counters or departments, without regard to the individual taxa…

.03 Repairs of Tangible Personal Property, Digital Codes, Digital Products, and Taxable Services. A. General. (1) The charge for labor to repair or alter existing tangible personal property, a digital code, or a digital product belonging to another for the purpose of restoring th…

.04 Published Material. A. Definition. (1) In this regulation, the following term has the meaning indicated. (2) Term Defined — Published Material. (a) “Published material” means any textual or graphic material disseminated to another person or persons through printed, electronic…

.05 Food for Human Consumption. A. In this regulation, the following terms have the meanings indicated: (1) “Premises” means any building, grounds, parking lot, or other area that a food vendor owns or controls or another person makes available primarily for the use of the patron…

.06 Cancelled and Returned Sales. A. A vendor shall refund to a buyer the proportionate amount of sales and use tax that the buyer has paid if a sale is rescinded or cancelled or the property sold is returned to the vendor and the purchase price is wholly or partially repaid or c…

.07 Sales Where It Is Impractical to Establish the Amount of Property to Be Resold. A. Except as provided in §D of this regulation, if at the time of a sale, it is impractical for the buyer to establish the actual amount of the property, digital code, digital product, or taxable …

.08 “Taxable Price” Defined. A. The sales and use tax is computed on the “taxable price” of a transaction subject to the tax. The term “taxable price” is broadly defined by statute to include, with certain specific exceptions, the total consideration for the transaction, which ma…

.09 Sale of Medicines, Medical Supplies, Tobacco Cessation Products, Sickroom Equipment, and Certain Medical Equipment. A. The sales and use tax does not apply to sales of medicines, disposable medical supplies, tobacco cessation products, sickroom equipment, certain medical supp…

.10 Natural and Artificial Gas, Electricity, Steam, Oil, and Coal. A. Consumption in Production Activities or to Produce Snow for Commercial Services. (1) The sale of gas, electricity, steam, oil, or coal, consumed directly and predominantly in a production activity or used to op…

.11 Printing. A. Printed material means material produced by a mechanical process involving the transfer of text, images, or designs to tangible personal property. B. Charges for Printing and Sales of Printed Material. (1) Charges for the printing of tangible personal property by…

.12 Casual and Isolated Sales. The sales and use tax does not apply to a casual and isolated sale by a person who regularly does not sell tangible personal property, a digital code, a digital product or a taxable service if the sale price is less than $1,000 and the sale is not m…

.13 Certain Capital Transactions. A. Certain specific capital transactions are exempted from taxation. B. For the purpose of these exemptions: (1) The term “stock” means equity securities, including any equity security convertible into any other class of equity security, any warr…

.14 Resale Certificates. A. Definitions. (1) In this regulation, the following terms have the meaning indicated. (2) Terms Defined. (a) “Antique” means any item of personal property that: (i) Was made in an earlier period; (ii) Has special value because of its age; and (iii) Is a…

.15 Containers. A. The resale exclusion includes not only the purchase for resale of the particular products or their components but also the containers, cartons, bottles, pallets, packing, and their components sold with these products. B. A vendor may claim the resale exclusion …

.16 Photography. A. The sale of a photograph, photocopy, or blueprint is subject to tax whether delivered to the buyer electronically or in tangible form. When the product is delivered in tangible form, the tax also applies to separately stated charges for portrait photography, m…

.17 Dry Cleaners and Laundries. A. Persons operating dry cleaning establishments and laundries are required to collect the tax on receipts from their services when these services are performed for a person engaged in business, such as restaurants, hotels, motels, beauty shops, ba…

.18 Florists. The tax shall be collected on orders taken by a Maryland florist or nursery to be sent to a second florist or nursery, whether the delivery is to be made within or without the State. A florist or nursery making deliveries pursuant to orders received from another flo…

.19 Real Property Construction, Improvement, Alteration, and Repair. A. The sale of tangible personal property to a person who will use or resell it in the form of real property is taxable. Therefore, a person who constructs, improves, alters, or repairs real property shall pay t…

.20 Games and Amusements. A. Charges made for the privilege of bowling, golfing, swimming, and for playing billiards, pingpong, tennis, squash, badminton, and similar sports are not sales of tangible personal property and are not subject to the tax. B. Persons who offer these pri…

.21 Time of Collection. A. A sale is a transaction for the present or future transfer of title or possession of tangible personal property, a digital code, or a digital product or for the performance of taxable services, for a consideration, and the tax imposed on a retail sale a…

.22 Exempt Charitable or Nonprofit Organizations. A. In this regulation, “food” has the meaning as defined in Tax-General Article, §11-206(a)(3)(i) and (ii), Annotated Code of Maryland. B. Purchases by an Organization. (1) A purchase by a nonprofit charitable, educational, or rel…

.23 Room Rentals. A. A charge for a right to occupy a room or lodgings as a transient guest is subject to tax. The tax does not apply to charges to persons who rent living accommodations on a monthly basis or who are permanent residents. However, all rentals in resort areas for t…

.24 Tangible Personal Property Consumed in a Production Activity. A. This regulation applies to sales on or before June 30, 2000. A-1. The retail sale or use of tangible personal property that will be consumed directly and predominantly in a production activity, if consumed withi…

.25 Transactions in Interstate Commerce. A. General. The tax does not apply to a transaction which is not within the taxing power of this State under the Constitution of the United States, as interpreted from time to time by applicable court decisions. B. Tangible Personal Proper…

.26 Aircraft, Motor Vehicles, Railroad Rolling Stock, and Vessels Used in Interstate and Foreign Commerce. A. A sale or a sale for use of an aircraft, motor vehicle, railroad rolling stock, or vessel that is used principally in interstate or foreign commerce and a sale or a sale …

.27 Auctioneers, Agents, Brokers and Factors. Every factor, auctioneer, broker, or agent acting for any principal, or entrusted with possession of any bill of lading, custom house permit, or warehouse receipt for delivery of any tangible personal property or entrusted with posses…

.28 Lease of Tangible Personal Property, Digital Codes, Digital Products, Data or Information Technology Services, and Software Publishing Services. A. In this regulation, “lease” means: (1) The transfer of possession, absolutely or conditionally by any means, of tangible persona…

.29 Ice. In general, ice, including ice for household consumption, is not food for sales and use tax purposes. If, however, ice is sold as a component of food, such as in a beverage other than an alcoholic beverage, the provisions of the law concerning the sale of food shall appl…

.30 Fabrication or Production. A. The tax shall be charged on the full selling price for the production or fabrication of tangible personal property or a digital product on a special order for a consideration. This is true even though charges for labor are segregated from the cos…

.31 Direct Payment Permits. A. General Provisions. (1) Authority to Issue a Direct Payment Permit. (a) Except as provided in §A(1)(c) of this regulation, the Comptroller may not grant the authority to make direct payment, to the Comptroller, of sales and use tax due on purchases …

.32 Repealed. Cross References 03.06.01.32-2G(1)

.33 Out-of-State Vendor. A. A person who engages in the business of an out-of-State vendor shall collect and remit sales and use tax on all taxable sales for use in the State. B. A person engages in the business of an out-of-State vendor if the person: (1) Permanently or temporar…

.34 Special Use Tax on Certain Electricity. A. Definitions. (1) In this regulation, the following terms have the meanings indicated. (2) Terms Defined. (a) “On site generated electricity” has the meaning stated in Tax-General Article, §11-1A-01(b)(1), Annotated Code of Maryland. …

.35 Property and Services Used in a Film Production Activity. A. Definitions. In this regulation, the following terms have the meanings indicated: (1) “Certified film producer or film production company” means a film producer or film production company that has received a Certifi…

.36 Signs. A. Definitions. (1) In this regulation, the following terms have the meanings indicated. (2) Terms Defined. (a) “Banners” means signs made of cloth. (b) “Billboard signs” means freestanding advertising signs alongside a road installed by direct burial or anchor bolted …

.37 Tax Free Week for Qualifying Clothing and Footwear Items. A. Definitions. (1) In this regulation, the following terms have the meaning indicated. (2) Terms Defined. (a) “Accessory items” includes jewelry, watches, watchbands, handbags, handkerchiefs, umbrellas, scarves, ties,…

.38 Advertising Agencies. A. In General. (1) An advertising agency is providing nontaxable advertising services when the transaction with the client is for: (a) The preparation and placement of advertising in print, broadcast, or digital media; (b) Public relations; (c) Setting u…

.39 Detective, Guard, Armored Car Services, and Security Systems. A. In this regulation, the following terms have the meanings indicated. B. Terms Defined. (1) “Armored car service” does not include coin rolling or change room services, as long as these charges are separately sta…

.40 Sourcing Cellular Telephone and Other Mobile Telecommunications Services Charges. A. Definitions. (1) In this regulation, the following terms have the meaning indicated. (2) Terms Defined. (a) “Act” means the Mobile Telecommunications Sourcing Act, 4 U.S.C. §116, et seq. (b) …

.41 Sales of Appliances Meeting Certain Efficiency Requirements and Multifuel Pellet Stoves. A. Repealed. B. Repealed. C. The sales and use tax does not apply to a sale of a multifuel pellet stove designed to burn agricultural field corn. The fact that agricultural field corn can…

.42 Effective Rate Agreements. A. Definitions. (1) In this regulation, the following terms have the meanings indicated. (2) Terms Defined. (a) “Effective rate” means a calculated percentage derived from analysis of selected accounts for a selected sample period. (b) “Effective ra…

.43 Geothermal and Residential Wind Energy and Solar Equipment. A. Definitions. (1) In this regulation, the following terms have the meaning indicated: (2) Defined Terms. (a) “Equipment” means an implement, such as a tool, apparatus, appliance, utensil, or instrument, used to per…

.44 Tax-Free Weekend for Certain Energy Efficient Equipment. A. Definitions. (1) In this regulation, the following terms have the meanings indicated. (2) Terms Defined. (a) “Compact fluorescent light bulb” means a fluorescent light bulb that has been compressed into the size of a…

.45 Sales and Use Tax on Sales of Dyed Diesel Fuel by Marinas. A. Definitions. (1) In this regulation, the following terms have the meanings indicated. (2 Terms Defined. (a) “Dyed diesel fuel” means diesel fuel that is dyed under U.S. Environmental Protection Agency rules for hig…

.46 Parent-Teacher Organization Fundraisers. A. Definitions. (1) In this regulation, the following terms have the meanings indicated. (2) Terms Defined. (a) “Organization within an elementary or secondary school” means a formal group of students, teachers, administrators, and/or …

.47 Cannabis. A. Scope. This regulation applies to all businesses required to be licensed or registered by the Maryland Cannabis Administration, including growers, micro growers, processors, microprocessors, incubator space operators, dispensaries, micro dispensaries, on-site con…

.48 Data or Information Technology Services and Software Publishing Services. A. Definitions. (1) In this regulation, the following terms have the meaning indicated. (2) Terms Defined. (a) “Buyer” has the meaning stated in Tax-General Article, §11-101(b), Annotated Code of Maryla…

.49 Multiple Points of Use Certificates. A. Definitions. (1) In this regulation, the following terms have the meaning indicated. (2) Terms Defined. (a) “Affiliated Group” has the meaning stated in Internal Revenue Code §1504. (b) “Affiliated Group” includes related parties descri…

.50 Applicable Rate for Data or Information Technology Services and Software Publishing Services. A. Definitions. (1) In this regulation, the following terms have the meaning indicated. (2) Terms Defined. (a) “Data or information technology service” has the meaning stated in Regu…