Maryland issued guidance for online sellers after the recent decision in South Dakota v. Wayfair, Inc. advising them to review the decision. Wayfair struck down the requirement that a vendor must be physically present in a state to be subject to sales and use tax in that state.
Sellers collecting and remitting Maryland sales tax should continue to do so.
Remote Seller Collection
Maryland imposes sales tax as broadly as permitted by the U.S. Constitution. Remote sellers should review the Wayfair decision to see how they are affected. Remote sellers that want to start collecting tax should complete a Combined Registration Application.
Maryland has not signed the Streamlined Sales Tax Agreement and is not a participating state. SST registration cannot be used to collect Maryland sales tax.
Maryland Vendor Collection
Maryland vendors that sell into other states may have to collect tax for those sales. Vendors are advised to contact states they make sales in for guidance on collection.
Sales and Use Tax Alert, Maryland Comptroller, July 17, 2018, ¶202-050