The Maryland sales and use tax is imposed on taxable retail sales and the use of tangible personal property and designated services. The statewide general tax rate is 6%.
While there is no local sales or use tax in Maryland, municipalities can impose certain taxes based on receipts.
Baltimore imposes taxes on the following activities:
- controlled dangerous substances
- hotel rooms
- parking services
- phone service
- public transportation service
- utility service
If you are in the mood for a Maryland crab cake, the state sales tax does not apply to sales for consumption off the premises of hard and soft shell crabs, but does apply to crab dishes, such as crab cakes and crab soup, prepared for immediate consumption.
With a relatively low sales and use tax rate, Maryland is a manageable state for sales and use tax purposes. However, dealing with the local jurisdictions and their municipal taxes will prove difficult as they lack adequate guidance and available tax forms.
Stay tuned for more of Jeff's EYE ON series as he blogs aboout sales and use tax State by State.