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03.06.01.00.htm 03.06.01.00. Title 03 COMPTROLLER OF THE TREASURY Subtitle 06 SALES AND USE TAX Chapter 01 Sales and Use Tax Authority: Tax-General Article, §2-102, 2-103, 11-102, 11-104(h) 11-204, 11-206, 11-226, 11-228, 11-407, 11-410, and 11-701, Annotated Code of Maryland
03.06.01.01.htm 03.06.01.01. 01 Personal, Professional, or Insurance Services.. A. Except for taxable services set forth in Tax-General Article, §11-101(k) 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 ex
03.06.01.02.htm 03.06.01.02. 02 Combined Sales.. 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
03.06.01.03.htm 03.06.01.03. 03 Repairs of Tangible Personal Property.. A. General.. 1) The charge for labor to repair or alter existing tangible personal property belonging to another for the purpose of restoring the property 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.. B. Persons engaged in repairing tangible personal property of others for a consideration may handle the sales and use tax on
03.06.01.04.htm 03.06.01.04. 04 Newspapers.. A. Printing and Sale.. 1) The printing and sale of newspapers that are distributed by the publisher at no charge are not subject to the sales and use tax.2) The sale of an item which is to be distributed as a component part of a newspaper, such as an advertising supplement, is not subject to the tax.B. Requirements for Classification as a Newspaper.. 1) A publication is not a newspaper unless:.
03.06.01.05.htm 03.06.01.05. 05 Food for Human Consumption.. 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. Th
03.06.01.06.htm 03.06.01.06. 06 Cancelled and Returned Sales.. 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 buyeB. Whenever any vendor ha
03.06.01.07.htm 03.06.01.07. 07 Sales Where It Is Impractical to Establish the Amount of Property to be Resold.. A. If, at the time of a sale, it is impractical for the buyer to establish the actual amount of the property 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 will not be resold, or if the buyer cannot determine whether or not a majority of the tangible personal
03.06.01.08.htm 03.06.01.08. 08 "Taxable Price" Defined.. A. The sales and use tax is computed on the "taxable price" of a transaction subject to the tax. The term "taxable price" is broadly defined by statute to include, with certain specific exceptions, the total consideration for the transaction, which may be either in the form of money, rights, property, promises or anything else of value, or by exchange or barter. The total monetary value of the consideration, that is, of all those things which in
03.06.01.09.htm 03.06.01.09. 09 Sale of Medicines, Medical Supplies, Tobacco Cessation Products, Sickroom Equipment, and Certain Medical Equipment.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..
03.06.01.10.htm 03.06.01.10. 10 Natural and Artificial Gas, Electricity, Steam, Oil, and Coal.. 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
03.06.01.11.htm 03.06.01.11. 11 Printing.. A. 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:
03.06.01.12.htm 03.06.01.12. 12 Casual and Isolated Sales.. 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 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 or not 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.
03.06.01.13.htm 03.06.01.13. 13 Certain Capital Transactions.. 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
03.06.01.14.htm 03.06.01.14. 14 Resale Certificates.. 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 interes
03.06.01.15.htm 03.06.01.15. 15 Containers.. 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
03.06.01.16.htm 03.06.01.16. 16 Photography.. A. The sale of a photograph, photostatic copy, or blueprint is a sale of tangible personal property subject to tax. The tax also applies to 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 se
03.06.01.17.htm 03.06.01.17. 17 Dry Cleaners and Laundries.. 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
03.06.01.18.htm 03.06.01.18. 18 Florists.. The tax shall be collected on orders taken by a Maryland florist or nurseryman to be telegraphed to the second florist or nurseryman, whether the delivery is to be made within or without the State. A florist or nurseryman making deliveries pursuant to telegraph orders received from another florist or nurseryman may not collect the tax regardless of whether the florist or nurseryman forwarding the order is within or without this State.
03.06.01.19.htm 03.06.01.19. 19 Real Property Construction, Improvement, Alteration, and Repair.. 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 affe
03.06.01.20.htm 03.06.01.20. 20 Games and Amusements.. 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.
03.06.01.21.htm 03.06.01.21. 21 Time of Collection.. A. A sale is a transaction for the present or future transfer of title or possession of tangible personal property, 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 is to be delivered, or the services are to be performed. Except as provided by this regulation or for a
03.06.01.22.htm 03.06.01.22. 22 Exempt Charitable or Nonprofit Organizations.. A. In this regulation, "food" has the meaning as defined in Tax-General Article, §11-206(a)3)i) and (ii) Annotated Code of Maryland.B. Purchases by an Organization.. 1) A purchase by a nonprofit charitable, educational, or religious organization or volunteer fire company or department, or volunteer ambulance company or rescue squad, located in this State, when the purchase is made to carry on the work of the orga
03.06.01.23.htm 03.06.01.23. 23 Room Rentals.. A. A charge for a right to occupy a room or lodgings as a transient guest is subject to tax. The tax does not apply to charges to persons who rent living accommodations on a monthly basis or who are permanent residents. However, all rentals in resort areas for terms of 4 months or less are subject to the tax.B. Any amount charged or retained by a vendor as a result of the cancellation of a room or lodging is subject to tax. The vendor shall allocate the am
03.06.01.24.htm 03.06.01.24. 24 Tangible Personal Property Consumed in a Production Activity.. A. This regulation applies to sales on or before June 30, 2000.. A-1. The retail sale or use of tangible personal property that will be consumed directly and predominantly in a production activity, if consumed within 1 year after the property is first used in a production activity, is not subject to tax.B. Consumed Test.. 1) Tangible personal property is consumed if it is destroyed, used up, or w
03.06.01.25.htm 03.06.01.25. 25 Transactions in Interstate Commerce.. A. General. The tax does not apply to a transaction which is not within the taxing power of this State under the Constitution of the United States, as interpreted from time to time by applicable court decisions.B. Tangible Personal Property Shipped From this State.. 1) If tangible personal property is sold within this State, and possession is taken by the buyer within this State, the tax applies even if the tangible personal property is t
03.06.01.26.htm 03.06.01.26. 26 Aircraft, Motor Vehicles, Railroad Rolling Stock, and Vessels used in Interstate and Foreign Commerce.A. The sale or a sale for use of an aircraft, motor vehicle, railroad rolling stock, or vessel that is used principally in interstate or foreign commerce and a sale or a sale for use of a replacement part or other tangible personal property to be used physically in, on, or by it, are exempt from the tax.B. An aircraft, motor vehicle, railroad rolling stock, or vessel is used pr
03.06.01.27.htm 03.06.01.27. 27 Auctioneers, Agents, Brokers and Factors.. Every factor, auctioneer, broker, or agent acting for any principal, or entrusted with possession of any bill of lading, custom house permit, or warehouse receipt for delivery of any tangible personal property or entrusted with possession of any personal property for the purpose of sale shall be responsible for the proper collection and remittance of the tax with respect to these sales, regardless of the fact that the pri
03.06.01.28.htm 03.06.01.28. 28 Lease of Tangible Personal Property.. A. The transfer of possession, absolutely or conditionally by any means, of tangible personal property for a consideration, by way of lease, rental, royalty agreement, or grant of a license for use, referred to in this regulation as a "lease" is included within the statutory definition of the term "sale" and is thus subject to the tax in the absence of a specific exemption or exclusion.B. Each lease payment period is considered a separ
03.06.01.29.htm 03.06.01.29. 29 Ice.. In general, ice, including ice for household consumption, is not food for sales and use tax purposes. If, however, ice is sold as a component of food, such as in a beverage other than an alcoholic beverage, the provisions of the law concerning the sale of food shall apply. In all other instances, the sale of ice, including the sale of ice sculptures, is subject to taxation to the same extent as other tangible personal property. For example, if ice is used for packing a c
03.06.01.30.htm 03.06.01.30. 30 Fabrication or Production.. A. The tax shall be charged on the full selling price for the production or fabrication of tangible personal property on a special order for a consideration. This is true even though charges for labor are segregated from the cost of the materials.B. Production of a New Item.. 1) Whenever any new item is being produced the tax shall be collected on the full selling price as, for example, a manufacturer orders a repair part for machinery from a machi
03.06.01.31.htm 03.06.01.31. 31 Direct Payment Permits.. A. General Provisions.. 1) Authority to Issue a Direct Payment Permit.. a) Except as provided in §A(1)c) of this regulation, on or after July 1, 1993, the Comptroller may not grant the authority to make direct payment, to the Comptroller, of sales and use tax due on purchases by a vendor or issue permits evidencing this authority.b) Notwithstanding the provisions of §A(1)a) of this regulation, the Comptroller may continue to administer direct payment pe
03.06.01.32.htm 03.06.01.32. 32 Repealed..
03.06.01.32-1.htm 03.06.01.32-1. 32-1 Repealed..
03.06.01.32-2.htm 03.06.01.32-2. 32-2 Tangible Personal Property Used in a Production Activity.. A. This regulation applies to sales and purchases on or after July 1, 2000.. B. In this regulation, the following terms have the meanings indicated:. 1) Production Activity.. a) "Production activity" means:. i) Assembling, manufacturing, processing, or refining tangible personal property for sale or resale, except for processing food or beverages by a food vendor;
03.06.01.33.htm 03.06.01.33. 33 Out-of-State Vendor.. A. A person who engages in the business of an out-of-State vendor shall collect and remit sales and use tax on all taxable sales for use in the State.B. A person engages in the business of an out-of-State vendor if the person:. 1) Permanently or temporarily maintains, occupies, or uses any office, sales or sample room, or distribution, storage, warehouse, or other place for the sale of tangible personal property or a taxable service directly or indi
03.06.01.34.htm 03.06.01.34. 34 Special Use Tax on Certain Electricity.. A. Definitions.. 1) In this regulation, the following terms have the meanings indicated.. 2) Terms Defined.. a) "On site generated electricity" has the meaning stated in Tax-General Article, §11-1A-01(b)2) Annotated Code of Maryland.b) "Owner" has the meaning stated in Tax-General Article, §11-1A-01(c) Annotated Code of Maryland.. c) "Public service company" has the meaning stated in Tax-General Article, §8-401(f) Annotated Code
03.06.01.35.htm 03.06.01.35. 35 Property and Services Used in a Film Production Activity.. A. Definitions. In this regulation, the following terms have the meanings indicated:. 1) "Certified film producer or film production company" means a film producer or film production company that has received a Certificate of Eligibility for Film Production Sales and Use Tax Exemption from the Maryland Film Office of the Maryland Department of Commerce.2) Film Production Activity.. a) "Film production activ
03.06.01.36.htm 03.06.01.36. 36 Signs.. A. Definitions.. 1) In this regulation, the following terms have the meanings indicated.. 2) Terms Defined.. a) "Banners" means signs made of cloth.. b) "Billboard signs" means freestanding advertising signs alongside a road installed by direct burial or anchor bolted to a concrete base.c) "Freestanding signs" means advertising, identifying, or directional signs made of pylons or other material installed by direct burial or anchor bolted to a concrete base.
03.06.01.37.htm 03.06.01.37. 37 Tax Free Week for Qualifying Clothing and Footwear Items.. A. Definitions.. 1) In this regulation, the following terms have the meaning indicated.. 2) Terms Defined.. a) "Accessory items" includes jewelry, watches, watchbands, handbags, handkerchiefs, umbrellas, scarves, ties, headbands, and belt buckles.b) "Clothing or footwear" means an article of wearing apparel designed to be worn on or about the human body.B. Exempt Sales.. 1) The sales and use tax is not due on the sale of
03.06.01.38.htm 03.06.01.38. 38 Advertising Agencies.. A. In General.. 1) An advertising agency is providing nontaxable advertising services when the transaction with the client is for:a) The preparation and placement of advertising in print or broadcast media;. b) Public relations;. c) Setting up press conferences;. d) Conducting market research; or. e) Creative concept development.. 2) An advertising agency is selling tangible personal property when the transaction with the client is for the production and
03.06.01.39.htm 03.06.01.39. 39 Detective, Guard, Armored Car Services, and Security Systems.. A. In this regulation, the following terms have the meanings indicated.. B. Terms Defined.. 1) "Armored car service" does not include coin rolling or change room services, as long as these charges are separately stated.2) Detective Service.. a) "Detective service" means to conduct an investigation concerning:. i) A crime or wrong committed, assumed to have been committed, or threatened to be committed;.
03.06.01.40.htm 03.06.01.40. 40 Sourcing Cellular Telephone and Other Mobile Telecommunications Services Charges.. A. Definitions.. 1) In this regulation, the following terms have the meaning indicated.. 2) Terms Defined.. a) "Act" means the Mobile Telecommunications Sourcing Act, 4 U.S.C. §116, et seq.. b) "Customer" means:. i) The person that contracts with the home service provider for mobile telecommunications services; orii) For the purpose of determining the place of primary use, if the end use
03.06.01.41.htm 03.06.01.41. 41 Sales of Appliances Meeting Certain Efficiency Requirements and Multifuel Pellet Stoves.. A. Sales of Qualifying Electrical Appliances. The sales and use tax does not apply to the sale of the following electrical appliances that meet or exceed applicable Energy Star efficiency requirements developed by the United States Environmental Protection Agency and the United States Department of Energy:1) Clothes washers purchased on or after July 1, 2000, but before July 1, 2003;.
03.06.01.42.htm 03.06.01.42. 42 Effective Rate Agreements.. A. Definitions.. 1) In this regulation, the following terms have the meanings indicated.. 2) Terms Defined.. a) "Effective rate" means a calculated percentage derived from analysis of selected accounts for a selected sample period.b) "Effective rate agreement" means an agreement between the Comptroller and a vendor that allows a vendor to compute its sales and use tax liability for purchases made by the vendor for a specific period using a predetermine
03.06.01.43.htm 03.06.01.43. 43 Geothermal and Residential Wind Energy and Solar Equipment.. A. Definitions.. 1) In this regulation, the following terms have the meaning indicated:. 2) Defined Terms.. a) "Equipment" means an implement, such as a tool, apparatus, appliance, utensil, or instrument, used to perform a mechanical or manual operation.b) “Geothermal equipment” means equipment that uses ground loop technology to heat and cool a structure.c) “Residential wind energy equipment” means equip
03.06.01.44.htm 03.06.01.44. 44 Tax-Free Weekend for Certain Energy Efficient Equipment.. A. Definitions.. 1) In this regulation, the following terms have the meanings indicated.. 2) Terms Defined.. a) “Compact fluorescent light bulb” means a fluorescent light bulb that has been compressed into the size of a standard-issue screw-in incandescent light bulb.b) “Energy Star product” means an air conditioner, clothes washer, clothes dryer, furnace, heat pump, standard size refrigerator, compact fluorescent
03.06.01.45.htm 03.06.01.45. 45 Sales and Use Tax on Sales of Dyed Diesel Fuel by Marinas.. A. Definitions.. 1) In this regulation, the following terms have the meanings indicated.. 2 Terms Defined.. a) “Dyed diesel fuel” means diesel fuel that is dyed under U.S. Environmental Protection Agency rules for high sulfur diesel fuel or is dyed under Internal Revenue Service rules for nontaxable use.b) “Marina” means an entity that maintains a place of business where motor fuel is sold primarily to vessels.
03.06.01.46.htm 03.06.01.46. 46 Parent-Teacher Organization Fundraisers.. A. Definitions.. 1) In this regulation, the following terms have the meanings indicated.. 2) Terms Defined.. a) “Organization within an elementary or secondary school” means a formal group of students, teachers, administrators, and/or parents of students that is recognized by an elementary or secondary school and that promotes, leads, or supports participation in an educational or extra-curricular activity at or on behalf of that
03.06.01.9999.htm 03.06.01.9999. Administrative History Effective date:. Regulation .01 effective June 2, 1961. Regulation .01 repealed effective January 1, 1990 (16:25 Md. R. 2709). Regulation .02 effective August 1, 1947; repealed and new Regulation .02 adopted effective February 15, 1982 (9:3 Md. R. 220)Regulation .02A and C amended effective January 1, 1989 (15:26 Md. R. 2979). Regulation .03 effective February 28, 1959; amended effective August 17, 1977 (4:17 Md. R. 1292) January 1, 1989 (15:26 Md. R. 2979)
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