Bill > SB600

This bill amends Maryland's sales and use tax law by altering the definition of a "retail sale" to exclude certain technology services under specific circumstances. Previously, a retail sale generally included tangible personal property, taxable services, digital codes, and digital products. However, this bill adds a new exclusion to the definition of a retail sale, specifying that certain taxable services, particularly those related to data or information technology services (classified under NAICS Sectors 518, 519, or 5415) or system and application software publishing services (classified under NAICS Sector 5132), will not be considered retail sales if the buyer intends to use or incorporate that service into another taxable service for sale, or if both the vendor and the buyer are part of the same affiliated group or are related pass-through entities. This change aims to clarify tax obligations for businesses involved in complex technology service transactions.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0600?ys=2026RS