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Sales Tax Update - June 2025

6/2/2025

Maryland Imposes New 3% Sales Tax on List of Software, IT and Data Services

On May 20, 2025 Governor Moore signed House Bill 352, enacting a 3% tax on a long list of software, data and IT services.  Recall that in 2021, Maryland expanded its sales tax to include digital products, which its defined broadly to include computer software regardless of method of delivery and certain business to business services. Excluded from taxable software requires configuration (i.e., does not operate immediately “out of the box”) and customized software.  In July 2022, Maryland effected additional sales tax legislation to exclude ...

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Reactivation

Virginia Ignores ITFA and Issues Tax Rulings on Internet Activation and Reactivation Fees

Dillon Tax Consulting
9/10/2014

In two recent rulings, Virginia Ruling of the Commissioner PD 14-130 and 14-131 , the Virginia Commissioner ruled that Internet activation and Internet reactivation fees are not exempt under the Internet Tax Freedom Act. Rather they are subject to Virginia's communications sales tax. In Bloomberg BNA's 9/5 /14 Sales Tax Slice blog posting ...

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