Budget & Taxes (Procurement)

HB 933 simplifies sales tax collection for businesses purchasing digital codes, digital products, or taxable services used across multiple locations. It allows vendors to accept a "fully completed" certificate (requiring basic business details like names, addresses, and registration numbers) without needing Comptroller approval, relieving vendors from collecting tax on those transactions. The certificate remains valid for all future sales of qualifying digital products/services to the same buyer until revoked in writing. This applies retroactively to past transactions, streamlining tax compliance for businesses operating across jurisdictions or reselling digital goods.

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.