reglab/statecodes huggingface dataset:
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.12 - Nonresident Real Estate Withholding Tax › Section 03.04.12.08 - Procedures for Requesting Early Refunds

Current through Register Vol. 51, No. 14, July 12, 2024
A. An individual or a corporation that has paid withholding tax in excess of the amount owed may file an Application for Tentative Refund of Withholding on Sales of Real Property by Nonresidents (MW506R) with the Comptroller 60 days after the date the tax was paid to the clerk or the Department, but not later than December 1 of the calendar year in which the tax was paid.
B. When the transferor of real property is a pass-through entity:
(1) A member or a shareholder of a pass-through entity may file an Application for Tentative Refund of Withholding on Sales of Real Property by Nonresidents if the applicant provides sufficient documentation of their status as a member of the pass-through entity and:
(a) The member or shareholder is the sole member or shareholder of the transferor pass-through entity; or
(b) The members or shareholders is one of two members or shareholders and the two members or shareholders are a married couple.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.14 - Corporate Income Tax Reporting › Section 03.04.14.01 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed.
(2) "Corporate group" has the meaning stated in Tax-General Article, §10-804.1(a)(1) and (2), Annotated Code of Maryland.
(3) "Finnigan" means a method of apportioning taxable income of a corporate group whereby the numerator consists of the Maryland receipts, property, and payroll of all members of the corporate group regardless of whether the members have nexus with Maryland and are required to file a Maryland corporate income tax return.
(4) "Joyce" means a method of apportioning taxable income of a corporate group whereby the numerator consists of the Maryland receipts, property and payroll of all members of the group having nexus in Maryland and required to file a Maryland corporate income tax return.
(5) "Nonoperational" means income of a corporation that is not earned as a part of the corporation's unitary business.
(6) "Unitary business" means a business in which the activities of the corporations comprising the business, whether related as a parent and subsidiary or as affiliated corporations related through common ownership, are economically interdependent as demonstrated by the following factors:
(a) Strong centralized management;
(b) Functional integration; and
(c) Attainment of operational economies of scale.
(7) "Water's edge" means a method for preparing a combined income tax report that includes the income and activities of all members of a corporate group that are in a unitary business and are:
(a) Corporations organized or incorporated in the United States, including those corporations qualifying for the Puerto Rico and Possession Tax Credit as provided in IRC Section 936 (26 U.S.C. 936); and
(b) Corporations organized or incorporated outside of the United States whose business activity in the United States is 20 percent or more of the corporation's total business activity. Foreign corporations that conduct 20 percent or more of their business activity in the United States, as measured by the average of the property and payroll factors, shall be included 100 percent in a water's edge combined report. Any business activity in Maryland subjects a foreign corporation to Maryland income tax. The threshold test for purposes of combined reporting determines whether the foreign corporation is a member of a unitary group.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.14 - Corporate Income Tax Reporting › Section 03.04.14.02 - Reports Required

Current through Register Vol. 51, No. 14, July 12, 2024
A. The reports described in this regulation shall be submitted electronically, using the form and instructions available on the Comptroller's website at www.marylandtaxes.com.
B. Every corporate group shall file the following reports with the Comptroller:
(1) A pro forma water's edge combined corporate income tax report, including taxable income of the corporate group, eliminations to account for intercompany transactions within the corporate group, and apportionment factors computed under both Joyce and Finnigan methods of apportionment;
(2) A report that reflects the dollar value of all property that is shipped from an office, store, warehouse, factory, or other place of storage in this State where the purchaser is the United States government;
(3) A report that reflects the dollar value of all property that is shipped from an office, store, warehouse, factory, or other place of storage in this State where the seller is not taxable in the state in which the purchaser takes possession; and
(4) A report that reflects the amount and source of nonoperational income of each member of the corporate group whose commercial domicile is in this State.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.14 - Corporate Income Tax Reporting › Section 03.04.14.03 - Penalties

Current through Register Vol. 51, No. 14, July 12, 2024
A. Failure to File Required Reports.
(1) Subject to §A(3) of this regulation, if a corporate group fails to file the reports required under this chapter, the Comptroller shall assess the penalties set forth in this section.
(2) The penalties to be assessed are:
(a) Up to $5,000 per day for each of the first 30 days following the due date during which a report has not been filed; and
(b) Up to $10,000 per day for each day after the first 30 days that a report has not been filed.
(3) The Comptroller may, for any reason, issue an order abating or decreasing the penalty established under this section.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.15 - Electronic Filing Requirements for Business Tax Credits › Section 03.04.15.01 - Definition

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following term has the meaning indicated.
B. Term Defined. "Business tax credit" means:
(1) Aerospace, Electronics, or Defense Contract Tax Credit;
(2) Apprentice Employee Tax Credit;
(3) Biotechnology Investment Incentive Tax Credit;
(4) Businesses That Create New Jobs Tax Credit;
(5) Clean Energy Incentive Tax Credit;
(6) Community Investment Tax Credit;
(7) Commuter Tax Credit;
(8) Cybersecurity Incentive Tax Credit;
(9) Electric Vehicle Recharging Equipment Tax Credit;
(10) Employer-Provided Long-Term Care Insurance Tax Credit;
(11) Employment Opportunity Tax Credit;
(12) Endow Maryland Tax Credit;
(13) Endowments for Historically Black Colleges and Universities Tax Credit;
(14) Enterprise Zone Tax Credit;
(15) Film Production Activity Tax Credit;
(16) Green Building Tax Credit;
(17) Health Enterprise Zone Hiring Credit;
(18) Heritage Structure Rehabilitation Tax Credit;
(19) Job Creation Tax Credit;
(20) Maryland Disability Employment Tax Credit;
(21) Maryland Employer Security Clearance Costs Tax Credit;
(22) Maryland-Mined Coal Tax Credit;
(23) One Maryland Economic Development Tax Credit;
(24) Oyster Shell Recycling Tax Credit;
(25) Qualified Vehicle Tax Credit;
(26) Research and Development Tax Credit; an
(27) Wineries and Vineyards Tax Credit
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.15 - Electronic Filing Requirements for Business Tax Credits › Section 03.04.15.02 - Electronic Filing Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
A. Any taxpayer claiming a business tax credit, an excess carryover of a business tax credit, or a recapture of a business tax credit shall claim the credit on an electronically filed original or amended Maryland income tax return.
B. Any taxpayer claiming any business tax credit requiring certification, any excess carryover of a business tax credit requiring certification, or any recapture of a business tax credit requiring certification shall electronically file the required certification and any required attachments for the credit as a binary attachment with the electronically filed original or amended Maryland income tax return.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.15 - Electronic Filing Requirements for Business Tax Credits › Section 03.04.15.03 - Exceptions

Current through Register Vol. 51, No. 14, July 12, 2024
A. An organization exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code claiming a credit against the payment to the Comptroller of taxes that the organization is required to withhold from the wages of employees is exempt from the electronic filing requirements under this chapter.
B. A taxpayer claiming a business tax credit against fiduciary income tax is exempt from the electronic filing requirements under this chapter.
C. An individual claiming the Sustainable Communities Tax Credit is exempt from the electronic filing requirements under this chapter.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 05 - MISCELLANEOUS REVENUE › Chapter 03.05.01 - Abandoned Property Regulations › Section 03.05.01.01 - Abandoned Funds

Current through Register Vol. 51, No. 14, July 12, 2024
C. Effective June 1, 2003, for reporting periods ending on or after June 30, 2003, any checking, savings, share, negotiable order of withdrawal, automatic transfer, share draft, electronic terminal account, or other similar type of account held by a banking or financial organization is presumed abandoned after 3 years, if the depositor or shareholder has not actively deposited, withdrawn, or otherwise indicated an interest in the funds or deposit as evidenced by memorandum or correspondence from the depositor on file with the banking or financial organization.
D. Effect of Automatic Deposits and Withdrawals on Presumption of Abandonment.
(1) A depositor or shareholder shall be deemed to have actively deposited or withdrawn funds from an account covered by this regulation, thereby overcoming the presumption of abandonment described in §C of this regulation, if:
(a) The depositor or shareholder authorized and established an automatic deposit or withdrawal;
(b) The authorization has not been cancelled, revoked, rescinded, or otherwise terminated; and
(c) Funds are deposited or withdrawn automatically based on the depositor or shareholder's effective authorization.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 05 - MISCELLANEOUS REVENUE › Chapter 03.05.01 - Abandoned Property Regulations › Section 03.05.01.02 - Service Charges

Current through Register Vol. 51, No. 14, July 12, 2024
A. A service charge of any type may not be made by a holder of any property presumed abandoned under Commercial Law Article, Title 17, during the period of time giving rise to presumption of abandonment unless the holder complies with the requirements set forth in Commercial Law Article, §
									17-308.1.
B. Except in those instances in which a service charge is properly made pursuant to §17-308.1, a holder shall report, pursuant to §17-310, the full amount appearing on the face of every instrument presumed abandoned. By way of illustration but not of limitation, instruments subject to these provisions include certificates of deposit, drafts, traveler's checks, and money orders.
E. Effective June 30, 2003, for purposes of Commercial Law Article, §
									17-308.1, Annotated Code of Maryland, an account shall be considered dormant or inactive, if, with respect to that account, the owner has for a period of 1 year, taken none of the actions set forth in Commercial Law Article, §
									17-301, Annotated Code of Maryland. When a service charge is permitted, the maximum amount of the charge shall be $10 per year for an account that does not exceed $50 and $20 per year for an account that exceeds $50.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 05 - MISCELLANEOUS REVENUE › Chapter 03.05.01 - Abandoned Property Regulations › Section 03.05.01.03 - Liability for Interest

Current through Register Vol. 51, No. 14, July 12, 2024
A holder may not cease payment or accrual of any benefits, including dividends or interest on property, under this title, unless the holder complies with the requirements as set forth in Commercial Law Article, §
									17-308.1.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 05 - MISCELLANEOUS REVENUE › Chapter 03.05.01 - Abandoned Property Regulations › Section 03.05.01.04 - Prohibited Agreements

Current through Register Vol. 51, No. 14, July 12, 2024
Contractual agreements are not permitted which tend to circumvent the intention of the Maryland General Assembly and provide any holder subject to this Article with a windfall or private escheat practice. The total reported shall be the amount the owner would have received had the property not been abandoned.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 05 - MISCELLANEOUS REVENUE › Chapter 03.05.01 - Abandoned Property Regulations › Section 03.05.01.05 - Voluntary Reporting

Current through Register Vol. 51, No. 14, July 12, 2024
Since the Maryland law is purely custodial, any holder of unclaimed property may voluntarily report funds before the statutory due dates and be relieved of all accountability and responsibility upon delivery of the unclaimed property to this office.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 05 - MISCELLANEOUS REVENUE › Chapter 03.05.01 - Abandoned Property Regulations › Section 03.05.01.06 - Retirement Accounts

Current through Register Vol. 51, No. 14, July 12, 2024
The period of abandonment for accounts established pursuant to 26 U.S.C. §
										401(a), et seq. (commonly known as Self-Employed Retirement, or Keogh, Plans) and 26 U.S.C. §
										408(a), et seq. (commonly known as Individual Retirement Accounts or IRA's) may not begin until such time as distribution of all or part of the property constituting the respective account shall be, under the terms of the retirement plan, mandatory.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 05 - MISCELLANEOUS REVENUE › Chapter 03.05.01 - Abandoned Property Regulations › Section 03.05.01.07 - Automatically Renewable Certificates of Deposit

Current through Register Vol. 51, No. 14, July 12, 2024
The period of abandonment for any property automatically renewable according to its terms that is subject to 17-301 and 17-308 shall commence after the expiration of its initial term. If, at the time provided for delivery in §17-312, a penalty or forfeiture in payment of interest would result from the delivery of that property, the time for delivery shall be extended until such time as no penalty or forfeiture would result.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 05 - MISCELLANEOUS REVENUE › Chapter 03.05.02 - Abandoned Property Regulations-Notice of Assessment for Unclaimed Property › Section 03.05.02.01 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Administrator" means the State Comptroller.
(2) "State Comptroller", unless expressly provided otherwise, includes:
(a) An employee of the Comptroller acting within the scope of employment; and
(b) An agent or representative of the Comptroller acting within the scope of the Comptroller's authority.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 05 - MISCELLANEOUS REVENUE › Chapter 03.05.02 - Abandoned Property Regulations-Notice of Assessment for Unclaimed Property › Section 03.05.02.02 - Examination of Records and Notice of Assessment

Current through Register Vol. 51, No. 14, July 12, 2024
A. During normal business hours, the Administrator may examine the records of a person if there is reason to believe that the person failed to report property that should have been reported under Commercial Law Article, Title 17, Annotated Code of Maryland.
B. If the Administrator, after conducting an examination of the records of a person, determines that the person has failed to pay or deliver abandoned property to the administrator as required under Commercial Law Article, Title 17, Annotated Code of Maryland, the Administrator shall issue a Notice of Assessment for Unclaimed Property.
C. The Notice of Assessment for Unclaimed Property shall be dated and mailed to the person against whom the assessment is made.
D. A Notice of Assessment for Unclaimed Property is considered a decision of the administrator.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 05 - MISCELLANEOUS REVENUE › Chapter 03.05.02 - Abandoned Property Regulations-Notice of Assessment for Unclaimed Property › Section 03.05.02.03 - Review of a Notice of Assessment for Unclaimed Property

Current through Register Vol. 51, No. 14, July 12, 2024
A. Upon receipt of a Notice of Assessment for Unclaimed Property, the person shall promptly:
(1) Pay or deliver to the Administrator the abandoned property;
(2) File a written Request for Revision; or
(3) Commence an action in the circuit court.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 05 - MISCELLANEOUS REVENUE › Chapter 03.05.02 - Abandoned Property Regulations-Notice of Assessment for Unclaimed Property › Section 03.05.02.04 - Enforcement by the Administrator

Current through Register Vol. 51, No. 14, July 12, 2024
The Administrator may bring any action allowed by law, including but not limited to an enforcement action in the circuit court, to enforce the Notice of Assessment for Unclaimed Property or the Notice of Final Determination, or both.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.01 - Personal, Professional, or Insurance Services

Current through Register Vol. 51, No. 14, July 12, 2024
A. Except for taxable services set forth in Tax-General Article, § 11-101(m), Annotated Code of Maryland, the tax does not apply to a personal, professional, or insurance service that involves a sale as an inconsequential element for which no separate charge is made. Examples of services to which the tax does not apply are services customarily rendered by physicians, dentists, lawyers, accountants, insurance agents, pest exterminators, barbers, beauticians, funeral directors, and storage warehouseperson.
B. Purchases.
(1) A person providing nontaxable services shall pay the tax on all purchases of materials, supplies, tools, and equipment used by the person or transferred by the person as part of the nontaxable service unless a specific statutory exemption applies, such as that for medicines and medical supplies. Examples of purchases to which the tax applies are purchases of forms, office supplies, insurance policy blanks and jackets, insecticides, grooming supplies, packing materials, and utilities.
(2) A person providing taxable services shall pay tax on purchases of materials, supplies, tools,  equipment, and digital codes or digital products used by the person but may issue a resale certificate for the purchase of tangible personal property, digital codes, or digital products transferred as part of a taxable service and taxable services resold in unchanged form. For example, a janitorial company may purchase paper towels tax-free by issuing a resale certificate if those towels are used to stock the bathroom of a customer receiving taxable cleaning services. The janitorial company shall pay tax on its purchase of cleaning agents which the janitorial company uses to clean the bathroom of a customer receiving taxable cleaning services.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.02 - Combined Sales

Current through Register Vol. 51, No. 14, July 12, 2024
A. General. A vendor shall compute and impose the tax on the total taxable price of all sales to a buyer in the same licensed business location on the same business day, whether or not at different counters or departments, without regard to the individual taxable prices of the separate items comprising the total.
B. Exception.
(1) A vendor is not required to add the combined total of the taxable prices of a current sale with those of prior sales made to a buyer on the same day when it is impractical to determine whether in fact prior sales have been made to that buyer unless the buyer demonstrates prior purchases on that day, and requests that a combination of all taxable prices be made.
(2) A vendor who, for any reason, fragments essentially unitary sales (such as a restaurateur who requires that food and beverages be paid for separately) may not rely on this exception.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.03 - Repairs of Tangible Personal Property, Digital Codes, and Digital Products

Current through Register Vol. 51, No. 14, July 12, 2024
A. General.
(1) The charge for labor to repair or alter existing tangible personal property, a digital code, or a digital product belonging to another for the purpose of restoring the property, digital code, or digital product to its original condition or usefulness is not subject to tax.
(2) The tax does apply if the labor expended results in the creation of a new or different item.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.04 - Published Material

Current through Register Vol. 51, No. 14, July 12, 2024
A. Definition.
(1) In this regulation, the following term has the meaning indicated.
(2) Term Defined - Published Material.
(a) "Published material" means any textual or graphic material disseminated to another person or persons through printed, electronic, or other media.
(b) "Published material" includes a newspaper, magazine, periodical, chat room discussion, weblog, or any other similar product.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.05 - Food for Human Consumption

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this regulation, the following terms have the meanings indicated:
(1) "Premises" means any building, grounds, parking lot, or other area that a food vendor owns or controls or another person makes available primarily for the use of the patrons of one or more food vendors.
(2) "Facilities for food consumption" means items such as tables, chairs, booths, benches, counters, and stands set aside or made available for the consumption of food sold. The term does not include parking spaces for vehicles as the sole accommodation. If, however, any of the above-described equipment is located on a parking lot, this equipment constitutes "facilities for food consumption".
(3) "Substantial grocery or market business" means a business at which at least 10 percent of all sales of food are sales of grocery or market food items. Among other things, the sale of food that is of a type normally consumed on the premises of a restaurant, but which is packaged to carry out, does not constitute the sale of "grocery or market food items".
(4) "Food concessionaire under contract with the school or college or its designated contract agent" means a person who has been granted the right by a school or college to use school or college premises for the purpose of selling food.
(5) "Educationally related" means those events where the net proceeds are used for the benefit of the school or college or which provide educational benefit to the participants.
(6) "Crabs" means hard and soft shell crabs, but does not include crab dishes, such as crab cakes and crab soup, which are, instead, "seafood".
(7) "Food for immediate consumption" means:
(a) Food obtained from a salad, soup, or dessert bar;
(b) Party platters;
(c) Heated food;
(d) Sandwiches suitable for immediate consumption; or
(e) Ice cream, frozen yogurt, and other frozen desserts, sold in containers of less than 1 pint.
(8) "Snack food" means:
(a) Potato chips and sticks;
(b) Corn chips;
(c) Pretzels;
(d) Cheese puffs and curls;
(e) Pork rinds;
(f) Extruded pretzels and chips;
(g) Popped popcorn;
(h) Nuts and edible seeds; or
(i) Snack mixtures that contain one or more of the foods listed in §A(8)(a)-(h) of this regulation.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.06 - Cancelled and Returned Sales

Current through Register Vol. 51, No. 14, July 12, 2024
A. A vendor shall refund to a buyer the proportionate amount of sales and use tax that the buyer has paid if a sale is rescinded or cancelled or the property sold is returned to the vendor and the purchase price is wholly or partially repaid or credited. If, in lieu of a refund of the sales price, the vendor credits the amount on the buyer's account, a corresponding credit for sales and use tax previously paid by the buyer shall be made.
B. Whenever any vendor has refunded the tax paid by a buyer on a cancelled or returned sale, the vendor may deduct the amount of the purchase price refunded from the total amount reported as taxable sales and the amount of tax refunded from the total amount reported as tax collected on the vendor's sales and use tax return, provided accurate records of the transaction are maintained. Alternatively, the vendor may apply to the Comptroller for a refund of the tax properly refunded to the buyer if application for it is made in writing within 4 years from the payment of the tax.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.07 - Sales Where It Is Impractical to Establish the Amount of Property to be Resold

Current through Register Vol. 51, No. 14, July 12, 2024
A. If, at the time of a sale, it is impractical for the buyer to establish the actual amount of the property, digital code, or digital product being purchased which is to be resold, the tax shall be paid on the entire amount of the sale, either if the buyer has reason to believe that a majority of the tangible personal property, digital code, or digital product will not be resold, or if the buyer cannot determine whether or not a majority of the tangible personal property, digital code, or digital product will be resold. If any portion of the property is later resold without having first been used by the buyer, the buyer may apply for a refund of the taxes attributable to this property, digital code, or digital product within 4 years of the date of purchase.
B. If no tax is paid upon the purchase of tangible personal property, digital codes, or digital products pursuant to §A of this regulation, the buyer shall include the cost of that portion converted to the buyer's personal use as a purchase subject to the sales and use tax on the return to be filed for the period in which the property was converted.
C. The procedure described in §B shall also be followed by any person who purchases tangible personal property, digital codes, or digital products for resale without paying the tax, and who subsequently converts the property to personal use.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.09 - Sale of Medicines, Medical Supplies, Tobacco Cessation Products, Sickroom Equipment, and Certain Medical Equipment

Current through Register Vol. 51, No. 14, July 12, 2024
A. The sales and use tax does not apply to sales of medicines, disposable medical supplies, tobacco cessation products, sickroom equipment, certain medical supplies, and certain medical equipment.
B. For the purposes of Tax-General Article, Title 11, Annotated Code of Maryland, the following terms have the meanings indicated:
(1) Medical Equipment.
(a) "Medical equipment" means equipment that:
(i) Can withstand repeated use;
(ii) Is used exclusively to serve a medical purpose;
(iii) Is not useful to a person in the absence of illness or injury; and
(iv) Is for use in the home or on the individual's person.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.10 - Natural and Artificial Gas, Electricity, Steam, Oil, and Coal

Current through Register Vol. 51, No. 14, July 12, 2024
A. Consumption in Production Activities or to Produce Snow for Commercial Services.
(1) The sale of gas, electricity, steam, oil, or coal, consumed directly and predominantly in a production activity or used to operate machinery and equipment used to produce snow for commercial purposes or for use in residential condominiums is not subject to the tax. Production activities do not include processing food or a beverage by a retail food vendor or operating administrative or commercial facilities, such as offices, sales and display rooms, retail outlets and storage facilities, including refrigerated storage facilities.
(2) If electricity, gas, or steam is sold through a single meter for both exempt and taxable uses, the purpose which consumes the majority of the electricity, gas, or steam is the basis for determining the taxability of the sale. The buyer shall determine the majority usage, considering the relative connected load for each purpose and the relative time of operation of each over a period of 1 year, unless the circumstances of a particular case require a different period. Similarly, the taxability of purchases of oil or coal is determined by the majority use where it is impracticable to measure separately the amount purchased for each purpose.
(3) If the sale of electricity or natural gas is exempt from tax, the sale of the transmission, distribution, or delivery of that electricity or natural gas is also exempt from tax.
(4) In order to obtain this exclusion, the buyer of gas, electricity, steam, oil, or coal shall present to the vendor of the commodity and the vendor of the transmission, distribution, or delivery service a certification, upon a form available from the Comptroller, setting forth the basis for the claimed exemption. Upon presentation of the completed and signed form, the vendor may not collect the tax until notified by the Comptroller to resume collection or until the certification is revoked by the buyer. The buyer shall revoke the certification when no longer entitled to an exclusion under the terms of this regulation.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.11 - Printing

Current through Register Vol. 51, No. 14, July 12, 2024
A. Printed material means material produced by a mechanical process involving the transfer of text, images, or designs to tangible personal property.
B. Charges for Printing and Sales of Printed Material.
(1) Charges for the printing of tangible personal property by special order and sales of printed material by special order when made to ultimate consumers are subject to tax.
(2) Charges for printing and sales of printed material for the purpose of resale in unchanged form or incorporation into a product which is to be sold are not subject to the tax. Examples of nontaxable charges are as follows:
(a) Charges for the printing and sale of labels or name plates to a person who will affix them to a product intended for sale;
(b) Charges for the printing and sale of tangible personal property used to package products held for sale where the packaging is nonreturnable;
(c) Charges for the printing and sale of direction sheets, instruction books, warranties, and other printed matter packaged with or obtainable only with the purchase of products held for sale.
(3) If the charges for printing or a sale of printed material is subject to the tax, the tax applies to the total charge without deduction for separately itemized charges for property or services required to bring the printed matter to its completed state. Separately itemized delivery charges, including charges for postage, addressing, stamping, sealing, inserting, or wrapping, may be excluded from the charges subject to the tax.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.12 - Casual and Isolated Sales

Current through Register Vol. 51, No. 14, July 12, 2024
The sales and use tax does not apply to a casual and isolated sale by a person who regularly does not sell tangible personal property, a digital code, a digital product or a taxable service if the sale price is less than $1,000 and the sale is not made through an auctioneer or a dealer. In determining whether the $1,000 limitation has been exceeded, all sales made on the same occasion or as part of the same transaction by the same vendor to the same buyer shall be combined.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.13 - Certain Capital Transactions

Current through Register Vol. 51, No. 14, July 12, 2024
A. Certain specific capital transactions are exempted from taxation.
B. For the purpose of these exemptions:
(1) The term "stock" means equity securities, including any equity security convertible into any other class of equity security, any warrant, and any right to subscribe to or purchase any equity security. The term "stock" does not include any securities which are redeemable for cash at the option of the holder, or which are convertible into any form of debt securities.
(2) The term "transfer" means a transfer of personal property, a digital code, or a digital product:
(a) Under a reorganization within the meaning of §368(a) of the Internal Revenue Code;
(b) Upon organization of a corporation or joint-stock company, to the corporation or company principally in consideration for the issuance of its stock;
(c) To a partnership only as a contribution to its capital or in consideration for a partnership interest in the partnership; or
(d) To a limited liability company only as a capital contribution or in consideration for an interest in the limited liability company.
(3) A transfer of tangible personal property, a digital code, or a digital product to a corporation upon its organization is "principally in consideration for the issuance of its stock", if the aggregate value in money of the consideration other than its stock, issued, paid, or transferred by the corporation in exchange for the tangible personal property, digital code, or digital product is less than 50 percent of the fair market value of the tangible personal property, digital code, or digital product received by the corporation. The transfer to or assumption of liability by a corporation upon its organization is not "consideration other than its stock", if, without regard to any dollar limitation, the entire transaction would otherwise qualify as an exempt casual and isolated sale.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.14 - Resale Certificates

Current through Register Vol. 51, No. 14, July 12, 2024
A. Definitions.
(1) In this regulation, the following terms have the meaning indicated.
(2) Terms Defined.
(a) "Antique" means any item of personal property that:
(i) Was made in an earlier period;
(ii) Has special value because of its age; and
(iii) Is at least 70 years old.
(b) Used Collectible.
(i) "Used collectible" means an item of personal property that has been previously sold at retail as a new item and in which there is a general interest in collecting the item.
(ii) A general interest in the collection of an item is demonstrated by sales of the item at antique and collectible shows and shops or the existence of associations or publications dedicated to the collection of the item.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.15 - Containers

Current through Register Vol. 51, No. 14, July 12, 2024
A. The resale exclusion includes not only the purchase for resale of the particular products or their components but also the containers, cartons, bottles, pallets, packing, and their components sold with these products.
B. A vendor may claim the resale exclusion on the purchase of returnable containers, provided that the vendor uses them solely to deliver other property for sale. If the vendor makes any use of the containers for other purposes, the resale exclusion does not apply.
C. The resale exclusion does not apply to purchases of containers which will not be used to package tangible personal property for sale. For example, the tax applies to the purchase of materials used to package an item transferred in a nontaxable service transaction, such as the sale to a dry cleaner of boxes and plastic bags.
D. Except for sales to farmers, the claim for the resale exclusion on purchases of containers is made through the issuance of resale certificates. Sales of containers to farmers to transport products the farmer raises are expressly exempt and need not be supported with resale certificates.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.16 - Photography

Current through Register Vol. 51, No. 14, July 12, 2024
A. The sale of a photograph, photocopy, or blueprint is subject to tax whether delivered to the buyer electronically or in tangible form. When the product is delivered in tangible form. the tax also applies to separately stated charges for portrait photography, motion picture and videotaping production, and the development and printing of a picture.
B. The tax applies to rental charges for equipment used for the production of audio, video, or film recordings. Charges for services to operate this equipment are not subject to the tax if they are separately stated, identified, and made known to the buyer at the time of sale.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.17 - Dry Cleaners and Laundries

Current through Register Vol. 51, No. 14, July 12, 2024
A. Persons operating dry cleaning establishments and laundries are required to collect the tax on receipts from their services when these services are performed for a person engaged in business, such as restaurants, hotels, motels, beauty shops, barber shops, and other such establishments, which require the regular cleaning and laundering of their linens and textiles. When the service is performed for a dry shop, the person providing the laundry and dry cleaning service shall obtain a resale certificate from the dry shop operator.
B. Laundries and dry cleaners who rent textiles shall collect the tax on the rentals and may issue a resale certificate for the purchase of the textiles.
C. Laundry and dry cleaning services performed for individuals of their personal laundry are exempt from the tax.
D. This exemption also includes domestic diaper service.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.18 - Florists

Current through Register Vol. 51, No. 14, July 12, 2024
The tax shall be collected on orders taken by a Maryland florist or nursery to be sent to a second florist or nursery, whether the delivery is to be made within or without the State. A florist or nursery making deliveries pursuant to orders received from another florist or nursery may not collect the tax regardless of whether the florist or nursery forwarding the order is within or without this State.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.19 - Real Property Construction, Improvement, Alteration, and Repair

Current through Register Vol. 51, No. 14, July 12, 2024
A. The sale of tangible personal property to a person who will use or resell it in the form of real property is taxable. Therefore, a person who constructs, improves, alters, or repairs real property shall pay the tax on all materials purchased, which will be incorporated into real property in such a manner that the materials will lose their identity as tangible personal property.
B. Taxability is not affected by language in a real property construction contract or subcontract such as "tax included" or "tax exempt", except as provided in §D of this regulation or by any form of payment under the real property construction contract or subcontract, whether lump-sum, cost-plus, time and material, or otherwise.
C. Determination of Material as Real Property.
(1) The determination of whether material installed or annexed to real property will become a part of the real property depends principally upon the intention of the person making the annexation.
(2) If the intention of the annexation is to permanently and substantially improve land, a building, or other real property, the material will be considered to have become real property. An installed or annexed item which is an integral, necessary, and expected part of real property constitutes a permanent and substantial improvement to the real property.
(3) If the intention of the annexation is for a temporary purpose, that is, for the enjoyment or use of the material as a chattel or personalty, the material will be considered to retain its character as tangible personal property. Machinery used in a production activity retains its character as tangible personal property without regard to the method or permanency of its annexation to real property. Farm equipment, a foundation in support of machinery and equipment used in a production activity and any machinery, device, or equipment which is required for conformance with air or water pollution laws or regulations retain their character as tangible personal property.
(4) Factors to be considered in determining the intention of the party making the annexation are the:
(a) Nature of the article annexed;
(b) Mode of annexation;
(c) Purpose for which it was annexed; and
(d) Practicality and feasibility of removal of the annexed article.
(5) As a general rule, counters, countertops, and cabinetry installed in commercial spaces will be treated as tangible personal property. Doors, windows, molding, built-ins, and kitchen cabinetry installed in residential or commercial spaces will be treated as realty.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.20 - Games and Amusements

Current through Register Vol. 51, No. 14, July 12, 2024
A. Charges made for the privilege of bowling, golfing, swimming, and for playing billiards, pingpong, tennis, squash, badminton, and similar sports are not sales of tangible personal property and are not subject to the tax.
B. Persons who offer these privileges to the public are considered the consumers of all materials and supplies which they purchase to operate the establishments and shall pay the tax to their vendors.
C. Rentals of sporting equipment are subject to the tax.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 06 - SALES AND USE TAX › Chapter 03.06.01 - Sales and Use Tax › Section 03.06.01.21 - Time of Collection

Current through Register Vol. 51, No. 14, July 12, 2024
A. A sale is a transaction for the present or future transfer of title or possession of tangible personal property, a digital code, or a digital product or for the performance of certain services, for a consideration, and the tax imposed on a retail sale applies when the transaction is entered into, regardless of when the consideration is to be paid, the tangible personal property, digital code, or digital product is to be delivered, or the services are to be performed. Except as provided by this regulation or for a rental or lease, the vendor shall collect the tax from the buyer when the sale occurs.
B. Exception for Certain Credit or Installment Sales.
(1) If a vendor makes a credit or installment sale of tangible personal property, digital codes, or digital products which the vendor must manufacture, custom-alter, or order from a third party, collection of the tax may be deferred at the option of the vendor until the property, digital code, or digital product is delivered. Among other things, this exception does not apply to a sale, such as a lay-away sale, when delivery of existing property in the possession of the vendor is delayed pending full payment.
(2) The vendor may not defer collection of the tax beyond the time of full payment for or delivery of the property, digital code, or digital product, whichever occurs first. A vendor obligated to make more than one delivery as a result of a single sale of property, digital codes, or digital products which the vendor must manufacture, custom-alter, or order from a third party may defer collection of the tax on the portion of the price attributable to each delivery until payment of that portion of the price or the date of that delivery, whichever occurs first.
(3) If a sale as to which a vendor has elected to defer collection of the tax is cancelled and, for any reason, less than the full amount of any payment is returned to the buyer, the vendor shall allocate the amount retained as between taxable price and tax and remit that tax with the next return to the Comptroller.
(4) The authority to defer collection of the tax created by this section does not affect the nature or amount of the vendor's or buyer's liability as created at the time of entering into a transaction, but only affects the time of collection of the tax. Thus, for example, if between the time of sale and the time of delivery, a change in the rate of tax should occur, the original rate of tax shall apply.