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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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Sales Tax Update – March 2025

Michael T Dillon, Dillon Tax Consulting LLC
3/3/2025

North Carolina Clarifies Subscriptions to Access Software vs. Digital Content

In a November 1, 2024 decision, the North Carolina Department of Revenue determined that a subscription to access digital content is taxable, whereas the same subscription to access nontaxable content is not subject to sales tax.  Taxpayer, for a subscription fee, provided users with access ...

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