- Maryland clarified a 3% sales tax on data, IT, and software publishing services
- The clarification was issued in a Technical Bulletin on 10 June 2025
- The tax is part of a plan to address a USD 3 billion budget deficit
- Expected to raise USD 500 million in fiscal year 2026
- The tax takes effect on 1 July 2025
- Applies to all retail sales unless an exemption applies
- No exemption for sales to affiliated company members
- The tax rate is 3% of the taxable price of the service
- Expanded definition includes data services, IT services, and software publishing services
- The bulletin provides definitions, examples, and hypotheticals
- Covers topics like SaaS subscriptions, instalment sales, and contracts with tax-exempt entities
- Includes applicable exemptions and multiple point-of-use certificates
- Examples of services are categorized under relevant NAICS sectors and subsectors
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
