Sales and Use Tax - Definition of Retail Sale - Alterations

SB 600 modifies Maryland's sales tax definition to exclude certain business-to-business technology service sales from taxation. It specifically exempts sales of data/information technology services (NAICS 518, 519) and software publishing services (NAICS 5132) when: (1) buyers intend to incorporate them into other taxable services for resale, or (2) vendors and buyers are affiliated entities. This affects businesses selling or purchasing these technology services, removing sales tax liability for qualifying transactions. The bill clarifies existing tax rules rather than creating new taxes, effective July 1, 2026.