Maryland Sales and Use Taxes Taxation of digital products in Maryland
L. 2022, S723 (c. 535), effective 07/01/2022, amends the definition of “digital product” for purposes of application of the sales and use tax. “Digital product” does not include: (1) a product having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities where the purchaser holds a copyright or other intellectual property interest in the product, in whole or in part, if the purchaser uses the product solely for commercial purposes, including advertising or other marketing activities; or (2) computer software or software as a service (SaaS) purchased or licensed solely for commercial purposes in an enterprise computer system, including operating programs or application software for the exclusive use of the enterprise software system, that is housed or maintained by the purchaser or on a cloud server, whether hosted by the purchaser, the software vendor, or a third party.
Maryland Sales and Use Taxes Taxation of digital products in Maryland
