TaxByte: Maryland to Begin Taxing More Digital Products in March, 2021

by | Feb 26, 2021 | Tax Bytes

Effective March 15, 2021, Maryland will begin taxing various digital products including videos, e-books, audiobooks, ring tones, and more.

Governor Hogan’s veto of HB 932, which imposed Maryland’s 6 percent sales and use tax on digital goods, such as digital code, streaming, music, ring tones, e-books and audio books, videos, online newspapers and cable, satellite and pay-per-view TV programming, was overridden by the Maryland state legislature. The transaction is presumed to be made in the state where the customer’s tax address is located.

Enacting this clause aligns Maryland sales tax law with more than 30 jurisdictions at the state level that also charge sales tax and use tax on digital products.

While the effective date referred to in HB 932 is July 1st 2020, the new legislation will come into force on 15 March 2021. An overridden bill is effective later than its specified effective date or 30 days after the date of override, under the Maryland Constitution. Since the override date of the bill falls on a Sunday, HB 932 is effective on the next business day March 15th, 2021.

You can learn more in Maryland House Bill 932.

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Disclaimer: Our attorney wanted you to know that no financial, tax, legal advice or opinion is given through this post. All information provided is general in nature and may not apply to your specific situation and is intended for informational and educational purposes only. Information is provided “as is” and without warranty.

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