§ 11-403

Maryland § 11-403

• Jurisdiction: Maryland
• Article gtg: Tax - General
• Title: 11

Text

§11–403. IN EFFECT

(a) (1) In this section the following words have the meanings indicated.

(2) “Affiliated group” has the meaning stated under § 1504 of the Internal Revenue Code and includes related parties described under § 267(b)(10), (11), or (12) of the Internal Revenue Code.

(3) “Pass–through entity” has the meaning stated in § 10–102.1 of this article.

(4) “Related pass–through entities” means one or more pass–through entities connected through ownership with a common parent pass–through entity but only if the common parent:

(i) possesses at least 80% of the total voting power of the pass–through entity; and

(ii) has a value equal to at least 80% of the total value of the pass–through entity.

(5) “Sales” includes a booking transaction made through a short–term rental platform.

(b) Except as otherwise provided in this subtitle, a vendor shall collect the applicable sales and use tax from the buyer:

(1) at the time that the sale is made, regardless of when the taxable price is paid;

(2) if the tax is based on a credit or installment sale, at the time that the Comptroller requires by regulation; or

(3) if a sale for use is not taxable when the sale is made, at the time that the use becomes taxable.

(c) Except as otherwise provided in this title, unless a buyer is otherwise required by regulation to pay the sales and use tax directly to the Comptroller, the buyer shall pay the sales and use tax to the vendor at the time required under subsection (b) of this section.

(d) A vendor shall refund to a buyer the proportionate amount of sales and use tax that the buyer has paid if:

(1) (i) a sale is rescinded or canceled; or

(ii) the property sold is returned to the vendor; and

(2) the purchase price is wholly or partially repaid or credited.

(e) (1) A buyer may present to the vendor a certificate indicating multiple points of use of a digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this title, if:

(i) the buyer knows at the time of purchase that the digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this title will be:

1. concurrently available for use by the buyer in more than one taxing jurisdiction; or

2. resold in its original form to a member of an affiliated group or a related pass–through entity of which the buyer is also a member; and

(ii) the buyer delivers to the vendor the certificate indicating multiple points of use at the time of purchase.

(2) On receipt of the fully completed certificate indicating multiple points of use, the vendor is relieved of the obligation to collect, pay, or remit the applicable tax to the Comptroller and, subject to paragraph (4) of this subsection, the buyer is obligated to collect, pay, or remit the applicable tax to the Comptroller.

(3) The buyer delivering the certificate indicating multiple points of use may use any reasonable but consistent and uniform method of apportionment that is supported by the buyer’s records as they exist at the time of the sale and accurately reflects the primary use location in the State.

(4) (i) If the apportionment on the certificate indicating multiple points of use is determined based on a subsequent resale to one or more members of an affiliated group or related pass–through entities, the affiliated member or related pass–through entity reselling the digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this title to another affiliated member or related pass–through entity shall:

1. assume or absorb the sales and use tax due from the affiliated member or members or related pass–through entity or entities on that portion of the sale apportioned to the State and pay the sales and use tax due on behalf of the affiliated member or members or related pass–through entity or entities; or

2. be liable for the sales and use tax due from the affiliated member or members or related pass–through entity or entities if the sales and use tax due is not paid by the affiliated member or members or related pass–through entity or entities.

(ii) If the sales and use tax is paid as provided in subparagraph (i) of this paragraph, the affiliated member end user or related pass–through entity end user is relieved of the obligation to pay or remit the applicable tax to the Comptroller.

(5) Notwithstanding any other provision of this subsection, if the taxable price of a subsequent resale of a digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this title to an affiliated group member or related pass–through entity is higher than the taxable price on which the sales and use tax was paid, the end user shall be liable for the additional sales and use tax due on the difference in the taxable price.

(6) The certificate indicating multiple points of use shall include all information required by the Comptroller.

§11–403. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 **

(a) (1) In this section the following words have the meanings indicated.

(2) “Affiliated group” has the meaning stated under § 1504 of the Internal Revenue Code and includes related parties described under § 267(b)(10), (11), or (12) of the Internal Revenue Code.

(3) “Pass–through entity” has the meaning stated in § 10–102.1 of this article.

(4) “Related pass–through entities” means one or more pass–through entities connected through ownership with a common parent pass–through entity but only if the common parent:

(i) possesses at least 80% of the total voting power of the pass–through entity; and

(ii) has a value equal to at least 80% of the total value of the pass–through entity.

(5) “Sales” includes a booking transaction made through an accommodations intermediary.

(b) Except as otherwise provided in this subtitle, a vendor shall collect the applicable sales and use tax from the buyer:

(1) at the time that the sale is made, regardless of when the taxable price is paid;

(2) if the tax is based on a credit or installment sale, at the time that the Comptroller requires by regulation; or

(3) if a sale for use is not taxable when the sale is made, at the time that the use becomes taxable.

(c) Except as otherwise provided in this title, unless a buyer is otherwise required by regulation to pay the sales and use tax directly to the Comptroller, the buyer shall pay the sales and use tax to the vendor at the time required under subsection (b) of this section.

(d) A vendor shall refund to a buyer the proportionate amount of sales and use tax that the buyer has paid if:

(1) (i) a sale is rescinded or canceled; or

(ii) the property sold is returned to the vendor; and

(2) the purchase price is wholly or partially repaid or credited.

(e) (1) A buyer may present to the vendor a certificate indicating multiple points of use of a digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this title, if:

(i) the buyer knows at the time of purchase that the digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this title will be:

1. concurrently available for use by the buyer in more than one taxing jurisdiction; or

2. resold in its original form to a member of an affiliated group or a related pass–through entity of which the buyer is also a member; and

(ii) the buyer delivers to the vendor the certificate indicating multiple points of use at the time of purchase.

(2) On receipt of the fully completed certificate indicating multiple points of use, the vendor is relieved of the obligation to collect, pay, or remit the applicable tax to the Comptroller and, subject to paragraph (4) of this subsection, the buyer is obligated to collect, pay, or remit the applicable tax to the Comptroller.

(3) The buyer delivering the certificate indicating multiple points of use may use any reasonable but consistent and uniform method of apportionment that is supported by the buyer’s records as they exist at the time of the sale and accurately reflects the primary use location in the State.

(4) (i) If the apportionment on the certificate indicating multiple points of use is determined based on a subsequent resale to one or more members of an affiliated group or related pass–through entities, the affiliated member or related pass–through entity reselling the digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this title to another affiliated member or related pass–through entity shall:

1. assume or absorb the sales and use tax due from the affiliated member or members or related pass–through entity or entities on that portion of the sale apportioned to the State and pay the sales and use tax due on behalf of the affiliated member or members or related pass–through entity or entities; or

2. be liable for the sales and use tax due from the affiliated member or members or related pass–through entity or entities if the sales and use tax due is not paid by the affiliated member or members or related pass–through entity or entities.

(ii) If the sales and use tax is paid as provided in subparagraph (i) of this paragraph, the affiliated member end user or related pass–through entity end user is relieved of the obligation to pay or remit the applicable tax to the Comptroller.

(5) Notwithstanding any other provision of this subsection, if the taxable price of a subsequent resale of a digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this title to an affiliated group member or related pass–through entity is higher than the taxable price on which the sales and use tax was paid, the end user shall be liable for the additional sales and use tax due on the difference in the taxable price.

(6) The certificate indicating multiple points of use shall include all information required by the Comptroller.