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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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cloud computing

Sales Tax on Cloud-computing: Rulings Also Mean More Uncertainty and Unpredictability

Dillon Tax Consulting
12/13/2016

A number of sales tax decisions in Tennessee, Indiana and Illinois serve to remind us all of the uncertainty involving cloud computing transactions, and the importance to seek guidance from tax practitioners regarding your specific facts. While each taxpayers’ facts involved the access to and/or provision of cloud-based services, the transactions for each were ...

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