Maryland Sales and Use Tax

Maryland Sales and Use Tax Information

Submitted by George Hamilton

Disclaimer:  Blogs are the opinion of the author, not necessarily the St. Michaels Art League
Art sales in the state of Maryland are subject to the state’s 6% sales tax. Key points:
– Artists must obtain a state Sales and Use Tax Registration Number
– Normally sales tax reports and payment are due quarterly on the 20th of the following month, but payment schedules vary
– Remember to phone in a “no sales” return to avoid a penalty for not filing.
– Mark those tax due dates on your calendar.
For more detailed information click here.

Temporary Sales Tax License

A drawback to having a Sales & Use Tax License is that you must file reports 4 times per year, even if you have no reportable sales. The phone line for “no sales” is fairly convenient, but you still have to remember to call and have your Tax ID information at hand. An alternative if you rarely do art shows, is to obtain a Temporary Tax License for each event.

A Temporary Sales Tax License may be obtained by calling 410-767-1543. A temporary license tax return must be filed within 30 days of the event, for which the temporary license was obtained and any tax collected paid to the state. Of course, getting a temporary license year after year is likely to be more inconvenient than obtaining a regular Sales Tax License, and if you do 3 or more events per year, a regular sales tax number is required. The temporary license was primarily created for the out-of-state seller, who comes to an event in Maryland.