Under legislation passed without the governor’s signature, software and software-as-a-service sold or licensed for business use in Maryland will no longer be considered taxable digital products for the purposes of sales and use taxes.

A product with electrical, digital, or similar capabilities will not be defined as a taxable digital product if the purchaser has a copyright or similar interest in it and uses it purely for business purposes, according to the law. If purchased or licensed primarily for business reasons, software, including software as a service, is also not a taxable digital product under the bill.

For more information regarding the Maryland bill, please see House Bill 791.

The bill goes into effect on July 1st, 2022.




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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