Definition will change for a taxable ‘digital product’ in Maryland
HB 791 updates the definition of a taxable “digital product” in Maryland. And good news: Computer software and other services your company may purchase won’t be taxable once the bill’s in effect.
Effective July 1, 2022, the following applications are specifically not subject to sales and use tax, per the bill:
- A product with electrical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities where the customer holds a copyright or other intellectual interest in the product, as long as the customer uses it solely for commercial purposes (including marketing or advertising), and
- Computer software or cloud-based applications purchased or licensed solely for commercial purposes in an enterprise computer system, including operating programs or application software exclusively for the enterprise software system, that are housed or maintained by the customer on a cloud server. (The software can be hosted by the customer, a software vendor or another third party.)
- Share on
Free Training & Resources
Further Reading
States are always looking for ways to attract new businesses and prevent existing ones from pulling up stakes. Lowering corporate taxes is ...
No matter where entrepreneurs decide to start a business, they face a variety of taxes and regulations that cut into the bottom line from t...
The last few months of weather’s taken a toll on homes and businesses in many parts of the country. To lighten the load a bit, the IR...
After the flood of new e-commerce sales tax rules in the five years since the South Dakota v. Wayfair Supreme Court decision, this may be t...
The worst of the COVID-19 shutdown measures and George Floyd riots peaked less than three years ago. But the effects continue to rattle sta...
The outcome of the presidential race and which party will control the House and Senate is too close to call. But a handful of economic idea...
