Maryland Tax on Services: MD House Bill 1628

On February 20, 2020, the Maryland House of Delegates introduced MD House Bill 1628 (HB1628) which would substantially change the and sales and use tax in Maryland. Although House Bill 1628 would reduce the sales tax by one cent from $.06 to $.05, the bill would create a sales tax on just about all services, with a few exceptions. While some services in Maryland are currently taxable through sales and use tax, House Bill 1628 would expand that to even more services and not just specific ones.

In the aftermath of the Wayfair Decision by the U.S. Supreme Court, a bill proposal such as House Bill 1628 reminds business owners that they need to be aware of all state specific sales and use tax issues for any state that they may sell to.  In today’s society — when so many businesses operate outside of the state they are located in — these new laws could cause additional filing requirements for those business.  Business should carefully prepare prior to selling in other states to determine if they are required to register in that state and are required to file and pays sales tax in those states. Longman & Van Grack with continue to monitor this Bill and other like it to keep out clients up to date to help ensure they are aware of their filing compliance requirements.

Robb Longman’s extensive background in tax law provides Mr. Longman with the ability to advise his clients on all types corporate and tax issues including Maryland sales and use taxes. Mr. Longman has testified before the Maryland House of Delegates on tax matters and is currently the Secretary of the American Bar Association’s Tax Section . Mr. Longman regularly works with business and individual clients on all types of tax matters to help them minimize their taxes in their transactions and other concerns.