Expansion of the Sales and Use Tax to Computer Services

The office of the Comptroller has DRAFTED computer services sales and use tax regulations. The link to the draft regulations is posted below. Please be advised that these regulations are a DRAFT. The office of the Comptroller will not issue official proposed regulations until after the close of the current session of the Maryland General Assembly, as the Amendment to Tax-General Article § 11-101(c-1) regarding the taxability of computer services is subject to abrogation. However, given the complex nature of this new tax and its wide-reaching implications, the office of the Comptroller invites comments on these draft regulations from interested parties. Questions or comments may be submitted in writing to: Comptroller of Maryland, Computer Services Regulation, 301 West Preston Street, Room #203, Baltimore, MD 21201; or via email at cdcomputerservices@comp.state.md.us.

PLEASE NOTE THAT ANY COMMENTS SUBMITTED IN RESPONSE TO THESE DRAFT REGULATIONS WILL NOT BE CONSIDERED OFFICIAL COMMENTS. INTERESTED PARTIES WILL HAVE THE OPPORTUNITY TO SUBMIT OFFICIAL COMMENTS ONCE THE REGULATIONS ARE PUBLISHED IN THE MARYLAND REGISTER.

Also posted below is the link to the frequently asked questions (FAQs) pertaining to the taxability of computer services. For questions not addressed by the FAQs, you may submit questions in writing to either address listed above, or call (866)588-1878 or (410) 767-3150. The Comptroller’s office will have dedicated personnel available to answer calls Monday through Friday from 8:30 a.m. to 5:00 p.m.

• Draft Regulations - Applicability of the sales and use tax to the sale of computer services.
• Frequently Asked Questions - Expansion of the Sales and Use Tax to Computer Services.