Sales/Use/Indirect:
Maryland: Newly Adopted Rules Reflect State Law Taxation of Digital Products
Adopted Regs. Sections 03.06.01.01, 03.06.01.03, 03.06.01.04, et al., Md. Comptroller (eff. 7/11/22). Following Maryland’s 2021 enactment of legislation that subjects certain defined “digital products” to Maryland sales and use tax [see H.B. 932 (2020), and State Tax Matters, Issue 2021-7, for more details on this new law], as well as subsequently enacted legislation that includes some taxable “digital product” carveouts [see S.B. 787 (2021) and previously issued Multistate Tax Alert for more details on this legislation, and see H.B. 791 (2022)/S.B. 723 (2022) and State Tax Matters, Issue 2022-22, for more details on this legislation], the Maryland Comptroller of the Treasury (Comptroller) adopted rules reflecting the law changes, specifically corresponding edits to various state sales and use tax exemptions and exclusions.
Separately, the Comptroller once again updated its administrative guidance (see Business Tax Tip #29 Sales of Digital Products and Digital Code, Md. Comptroller (rev. 7/22)) containing a “non-exhaustive list” of digital codes and digital products the sale of which is subject to Maryland’s 6% sales and use tax if obtained or delivered by electronic means. Please contact us with any questions.
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