The 3% sales and use tax takes effect on 1 July 2025.
The Comptroller of Maryland has released Technical Bulletin (TB) 54, offering comprehensive guidance for buyers and vendors on complying with the expanded 3% sales tax on data, IT, and software publishing services, which takes effect on 1 July 2025.
This follows the Comptroller’s clarification of the 3% sales and use tax on certain data, IT, and software publishing services in Technical Bulletin No. 56, released on 10 June 2025.
The State of Maryland imposes a tax on retail sales in the state, as well as on the Use of tangible personal property, digital codes, digital products, and certain services within the state.
Under Technical Bulletin (TB) 54, a vendor must collect the sales and use tax due from the buyer on a sale of data or information technology services or a sale of software publishing services. However, when a buyer knows at the time of purchase that a data and information technology service, software publishing service, digital code, or digital product will be used concurrently both inside and outside Maryland, or resold to a member of an affiliated group, the buyer may present to the vendor a multiple points of use certificate (“MPU”).
A valid MPU Certificate exempts the vendor from the obligation to collect and remit sales and use tax. It requires either the buyer or a member of the affiliated group to whom the items were resold to remit the use tax on the apportioned use in Maryland. This technical bulletin will explain the purpose, procedure for requesting, and use of a multiple points of use certificate. A buyer is not required to issue an MPU Certificate.
For sales subject to the Maryland sales and use tax, if a buyer does not issue an MPU Certificate for the sale, they must pay the tax on the entire taxable price at the time of sale. The buyer may then request a refund of sales and use tax paid to another jurisdiction, which is based on the use in that jurisdiction. Buyers can request a refund by submitting Form SUT 205, Sales and Use Tax Refund Application.
The TB also outlines definitions for key terms like “buyers,” “vendors,” “MPUs,” and “Data or Information Technology Service.” It explains the purpose of MPUs, which include relieving vendors of the responsibility for collecting sales tax and requiring buyers or affiliated group members to remit use tax in Maryland. It outlines the procedure for buyers to request MPUs, including sales tax account registration and application submission. It clarifies the responsibilities of both buyers and vendors in issuing and accepting MPUs properly.
The Technical Bulletin also outlines emergency regulations for a new tax, effective 1 July 2025, which are set to be published in the Maryland Register on 11 July 2025.
