How the Wayfair Decision Affects Maryland Businesses

The Comptroller of Maryland has released a Tax Alert regarding the Maryland Sales & Use Tax in reference to the Supreme Court decision in South Dakota v. Wayfair. This Tax Alert is meant to shed light on what is expected of online retailers who sell products or provide a taxable service for use in Maryland.

To recap, the South Dakota v. Wayfair decision overturns the earlier decision made in North Dakota v. Quill Corporation, which stated that businesses must have a physical presence in a state in order for that state to collect and remit sales tax from its earnings. Recently, several states have signed the Streamlined Sales Tax Agreement, a plan aimed at simplifying tax collection, but Maryland is not one of the participating states.

According to the Comptroller, if you have already been collecting and paying sales tax to the state of Maryland, you should continue to do so.

If you have not been collecting and paying sales tax and you sell products or provide a taxable service in Maryland, you should read up on the recent Supreme Court’s Decision to see how it impacts you. We’ve covered this decision on our blog here.

If you would like to start collecting and paying sales tax to the state of Maryland, you need to get a sales and use tax license by completing a Combined Registration Application.

Maryland businesses selling products or taxable services in other states may be required to pay sales tax in those states. The Comptroller recommends directly contacting any states you may have business in if you have any questions regarding this decision.

For a deeper understanding about sales and use tax and to get your questions answered, you can now register for MSATP’s newest seminar/webinar, Sales and Use Tax After the Wayfair Case. To register for the webinar, click here, and to register for the in-person seminar, click here.