Maryland will begin imposing sales tax on the sale of digital products, starting March 14, 2021. This is an abrupt change in tax policy for a state that has historically steered away from imposing sales tax on electronically delivered and remotely accessible software, digital products, and cloud-based data and information services. These changes may be found primarily in Maryland Tax Code Sections 11-101(h) and 11-101(n).
The Comptroller’s office has published guidance on HB 932 21st Century Fairness Act which imposes sales and use tax on the sale of digital products. The guidance can be found here: