- Maryland began taxing SaaS in 2025, with a reduced tax rate available for certain business-use transactions.
- For SaaS used by employees in multiple states, some jurisdictions permit a Multiple Points of Use (MPU) exemption to allocate tax based on actual use.
- Maryland’s MPU exemption is more restrictive: businesses generally must register, apply for authorization, and receive approval before claiming the exemption.
- The required exemption certificate must be given to the vendor before the purchase, and authorization must be renewed periodically, typically every two years.
- Businesses with distributed workforces should determine MPU treatment before buying SaaS, not after the transaction.
Source: taxconnex.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.
