- Maryland Governor signed House Bill 352 on May 20, 2025
- Bill imposes a 3% sales tax on data and information technology services
- Effective July 1, 2025, affects system and application software publishing, computing infrastructure, data processing, web hosting
- Includes products under NAICS sectors 518, 519, 5415, 5132
- Expands definition of taxable services to include media or software rights licensing
- Affects libraries, archives, web search portals, custom computer programming, computer systems design, and management services
- May impact existing software and SaaS exemptions from 2021
- General sales tax rate remains 6%, new 3% tax applies only if no higher rate exists
- Taxpayers selling these products should review product offerings and nexus thresholds
- Review of exemptions and sourcing rules is advised before July 1 effective date
Source: salestaxinstitute.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.
