Maryland Administrative Code

.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…

.01 Club Membership. A. The gross receipts derived from an amount paid to become regularly entitled to the privileges of a club or other organization, as a member or otherwise, do not constitute an admissions and amusement charge subject to the tax, even though one of the privile…

.02 Rental Facilities. A. Except as provided in §B, below, the receipts derived from the sales of the sole right to use any place or the right to dispose of all the admissions to any place, are not subject to the tax. The person acquiring the right to use the facility is responsi…

.03 Employees. A. A person deriving gross receipts from admissions and amusement charges for admission is not liable for the tax on admissions for bona fide employees of the person if the employees receive free admission. If, however, a bona fide employee is admitted at a reduced…

.04 State Authorized Exemptions. A. Charitable, Educational, or Religious Exemptions. (1) The tax may not be imposed on gross receipts derived from any charge for admission or for merchandise, refreshments, or a service, if the gross receipts are used exclusively for a: (a) Chari…

.05 Locally Authorized Exemptions. A. A county or incorporated city or town which has authorized the imposition of the tax may enact exemptions from the tax. Legislation specifically authorizing political subdivisions to enact particular exemptions does not limit the authority of…

.01 Owners, Lessors, and Operators of Places Where Amusements Are Conducted. A lessor shall give prompt notice to the Comptroller containing the information in §§A—E, below, when a place from which gross receipts subject to the admissions and amusement tax are derived, is rented,…

.02 Records. A. Each taxpayer is required to keep, for a period of 4 years, unless permission is obtained from the Comptroller to destroy the records after a shorter period of time, all records in connection with: (1) Sales and purchases; and (2) Gross receipts subject to the adm…

.03 Returns. A. Filing Requirements. (1) Sales and Use Tax. (a) Subject to §A(1)(b) of this regulation, a person who makes taxable sales or purchases during the course of a month shall file with the Comptroller a report of those sales or purchases, accompanied by payment of the t…

.04 Refunds of Admissions and Amusement Tax. A. A taxpayer who has erroneously paid more admissions and amusement taxes, penalty, or interest than properly and legally payable may apply to the Comptroller for a refund on a form available from the Comptroller. B. The Comptroller s…

.05 Refunds of Sales and Use Tax. A. General. (1) The Comptroller shall treat any request for a credit as a request for a refund. (2) The Comptroller shall deny any request for a refund received more than 4 years after the tax was paid by the applicant to the Comptroller or to a …

.06 Revocation of Sales and Use Tax Licenses. A. The Comptroller may deny a license to an applicant, reprimand a licensee, or suspend or revoke a license: (1) If the applicant or licensee fraudulently or deceptively obtains or attempts to obtain a license for the applicant or lic…

.07 Bad Debts. A. A vendor is required to remit the sales and use tax on an accrual basis. If a vendor is unable to collect accounts receivable on which the sales and use tax has been remitted, a credit may be taken or refund applied for within 4 years of the vendor's payment of …

.01 Definition. “Organization” means any labor organization of State employees and any association of State management officials or supervisors.

.02 Deduction of Organization Dues. A. Procedure. (1) State law authorizes the Central Payroll Bureau, on written request of a State employee, to deduct organization dues from the employee's salary or wage, in certain specified circumstances. For employees paid through the Centra…

.01 Definitions. A. For purposes of the new tire fee and the tire recycling fee, the following terms have the meaning indicated. B. Terms Defined. (1) “First sale” means a sale of a new tire that is not a sale to a wholesaler or out-of-state retailer. (2) “New Tire Fee” means the…

.02 Tire Wholesaler Certificate. A. A tire dealer does not pay the new tire fees or the tire recycling fees on tires sold to a tire wholesaler. If a tire dealer does not know, or cannot ascertain, whether a buyer is a tire wholesaler, the tire dealer should request a written stat…

.03 Records. A. A seller of new tires in the State is required to keep, for a period of 4 years, unless permission is obtained from the Comptroller to destroy the records after a shorter period of time, all records in connection with the sale of new tires in the State. B. The rec…

.04 Returns. A. Filing Requirements. A person who is responsible for paying the new tire fee or the tire recycling fee on tires sold during the course of a month shall file with the Comptroller a return reporting those sales, accompanied by payment of the new tire fee and the tir…