Maryland August 2016 sales tax holiday
- Aug 12, 2016 | Gail Cole
Maryland’s 2016 tax-free week starts this Sunday, August 14, at 12:01 a.m. and concludes at midnight on August 20.
During the annual tax-free period, qualifying clothing and footwear costing $100 or less are exempt from the state sales tax. Accessories and clothing and footwear designed specifically for protective use (not for everyday wear) are taxable. A list of taxable and exempt items is provided by the Maryland Comptroller.
Online sales of qualifying items are also exempt, unless an item is on back order or the consumer is not billed until after the conclusion of the sales tax holiday (if, for example, billing does not occur until the item is shipped and shipment takes place after August 20).
Absorbing the tax
Vendors are permitted to absorb all or part of the sales and use tax on non-qualifying items, meaning they pay the tax but do not pass it on to the consumer. If a vendor chooses to do this, the tax must be separately stated on invoices/receipts, and the vendor must pay the tax when filing the return. Learn more about the Maryland tax-free week.
Sales tax software-as-a-service is the best way for retailers to handle sales tax during sales tax holidays. Learn how Avalara AvaTax works.
