Can I collect sales tax from customers in different states without violating tax laws in Maryland? What are the requirements?

Requirements for Collecting Sales Tax in Maryland and Other States

To collect sales tax from customers in different states, you must comply with the tax laws of each state where you have customers. Each state has its own sales tax laws and requirements, and it is important to understand and comply with them to avoid violating any tax laws.

In Maryland, businesses that sell tangible personal property or taxable services must register for a sales and use tax license with the Comptroller of Maryland ^[1.1]. Once registered, businesses must collect and remit sales tax on taxable sales made in Maryland ^[3.1].

If you have customers in other states, you may be required to collect sales tax in those states as well. The requirements for collecting sales tax in other states vary, but generally, businesses must have a physical presence in the state, such as a store, warehouse, or office, to be required to collect sales tax ^[1.1]. However, some states have enacted economic nexus laws that require businesses to collect sales tax if they meet certain sales thresholds in the state, regardless of whether they have a physical presence there ^[1.1].

To determine your sales tax obligations in other states, you should consult with a tax professional or review the sales tax laws of each state where you have customers.

Maryland Tax Laws and Requirements for Other Taxes

Maryland has various tax laws and requirements for other taxes, such as the public service company franchise tax, motor fuel tax, and individual income tax. For example, the Comptroller of Maryland includes a checkoff on the individual income tax return form for the “Maryland Cancer Fund Contribution” ^[1.7]. Authorized employees of the Field Enforcement Bureau of the Comptroller’s Office have the power to enforce various tax laws, including the admissions and amusement tax, income tax, and motor fuel tax ^[1.5].

To ensure compliance with Maryland’s tax laws and requirements for other taxes, you should consult with a tax professional or review the relevant tax laws and regulations.

Conclusion

To avoid violating tax laws in Maryland or other states, it is important to understand and comply with the sales tax laws and requirements of each state where you have customers. Additionally, businesses should be aware of Maryland’s tax laws and requirements for other taxes and consult with a tax professional or review the relevant tax laws and regulations to ensure compliance.

Source(s):

• [1.1] Section 2-102
• [3.1] Section 2-1302
• [1.5] Section 2-107
• [1.7] Section 2-112

Jurisdiction

Maryland

• General