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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 – December 2023

Michael T Dillon, Dillon Tax Consulting LLC
12/12/2023

Online commerce provides the ideal environment for wholesale transactions and drop-shipments.  You can literally have no employees or inventory – just a website and you are in business.  BUT – if you are the wholesaler, every sale you make is considered a retail transaction by taxing authorities, and is subject to applicable sales tax, unless and until ...

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