Overview
The Maryland Comptroller’s Office has issued a list of tangible personal property and services the sale of which is subject to sales and use tax.
Note: This is not a complete list but may serve as a general guide in determining the taxability of tangible personal property and services.
The list is published as required by law. A rebuttable presumption exists that any sale in Maryland is subject to sales and use tax.
Key Considerations
Whether a sale of a particular good or a service is taxable depends on multiple factors:
- Applicable law
- Applicable regulations
- The Comptroller’s tax publications
These sources should be consulted for more detailed explanations regarding property and services subject to sales and use tax.
Updates and Revisions
The current list has been updated to conform to statutory law. Updates include:
- Exemptions for certain hygiene, baby, children’s, and medical supplies
- Revisions to the definition of “digital product”
Reference:
List of Tangible Personal Property and Services Subject to Sales and Use Tax, Maryland Comptroller’s Office, 07/01/2022.
Frequently Asked Questions
What is considered tangible personal property in Maryland?
Tangible personal property refers to physical items that can be touched or moved, such as furniture, equipment, or clothing. In Maryland, the sale of these items is generally subject to sales and use tax unless specifically exempted by law.
Are all services in Maryland subject to sales and use tax?
No, not all services are taxable. Only certain services, as identified by Maryland law and regulations, are subject to sales and use tax. It’s important to consult the Comptroller’s publications for specifics.
What updates were made to the taxable items list?
The latest update includes new exemptions for hygiene, baby, children’s, and medical supplies, and also revises the definition of a “digital product.” These changes reflect adjustments to match current statutory law.
Is there a presumption that all sales in Maryland are taxable?
Yes. There is a rebuttable presumption that all sales in Maryland are taxable. This means sellers must collect sales tax unless they can prove the sale qualifies for an exemption.
Where can I find more details about taxable goods and services?
For comprehensive guidance, you should refer to applicable Maryland laws, regulations, and the Comptroller’s tax publications. These sources provide detailed explanations and examples.