In this title the following words have the meanings indicated. “Accommodation” means a right to occupy a room or lodgings as a transient guest. “Accommodations intermediary” means a person, other than an accommodations provider, who facilitates the sale or use of an accommodation and charges a buyer the taxable price for the accommodation. For purposes of this subsection, a person shall be considered to facilitate the sale or use of an accommodation if the person brokers, coordinates, or in any other way arranges for the sale or use of an accommodation by a buyer. “Accommodations provider” means a person that owns, operates, or manages an accommodation and makes the accommodation available for sale or use to a buyer. “Booking transaction” means any transaction in which there is a retail sale of an accommodation. “Buyer” means a person who: acquires tangible personal property in a sale; obtains a taxable service in a sale; or acquires a digital code or digital product in a sale. “Cleaning of a commercial or industrial building” means the following services performed to a commercial or industrial building: floor, carpet, wall, window, ceiling, and exterior cleaning; and janitorial services. “Customer tax address” means, with respect to a sale of a digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section: for a digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section that is received by a buyer at the business location of the vendor, the address of that business location; if item (1) of this subsection is not applicable and the primary use location of the digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section is known by the vendor, that primary use location; if items (1) and (2) of this subsection are not applicable, the location where the digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section is received by the buyer, or by a donee of the buyer that is identified by the buyer, if known to the vendor and maintained in the ordinary course of the vendor’s business; if items (1) through (3) of this subsection are not applicable, the location indicated by an address for the buyer that is available from the business records of the vendor that are maintained in the ordinary course of business of the vendor’s business, when use of the address does not constitute bad faith; if items (1) through (4) of this subsection are not applicable, the location indicated by an address for the buyer obtained during the consummation of the sale, including the address of the buyer’s payment instrument, when use of the address does not constitute bad faith; or if items (1) through (5) of this subsection are not applicable, including a circumstance in which a vendor is without sufficient information to apply those items, one of the following locations, as selected by the vendor, provided that the location is consistently used by the vendor for all sales to which this item applies: the location in the United States of the headquarters of the vendor’s business; the location in the United States where the vendor has the greatest number of employees; or the location in the United States from which the vendor makes digital products available for electronic transfer. “Detective” means a person who is authorized to provide private detective services under Title 13 of the Business Occupations and Professions Article. “Digital code” means a number, symbol, alphanumeric sequence, barcode, or similar code that: may be obtained by any means, including: in a tangible form, such as a card; or through e–mail; and provides a buyer with a right to obtain one or more digital products. “Digital code” does not include a gift certificate or gift card with a monetary value that may be redeemable for an item other than a digital product. “Digital product” means a product that is obtained electronically by the buyer or delivered by means other than tangible storage media through the use of technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. “Digital product” includes: a work that results from the fixation of a series of sounds that are transferred electronically, including: prerecorded or live music or performances, readings of books or other written materials, and speeches; and audio greeting cards sent by e–mail; a digitized sound file, such as a ring tone, that is downloaded onto a device and may be used to alert the user of the device with respect to a communication; a series of related images that, when shown in succession, impart an impression of motion, together with any accompanying sounds that are transferred electronically, including motion pictures, musical videos, news and entertainment programs, live events, video greeting cards sent by e–mail, and video or electronic games; a book, generally known as an “e–book”, that is transferred electronically; and a newspaper, magazine, periodical, chat room discussion, weblog, or any other similar product that is transferred electronically. “Digital product” does not include: prerecorded or live instruction by a public, private, or parochial elementary or secondary school or a public or private institution of higher education; instruction in a skill or profession in a buyer’s current or prospective business, occupation, or trade if the instruction: is not prerecorded; and features an interactive element between the buyer and the instructor or other buyers contemporaneous with the instruction; a seminar, discussion, or similar event hosted by a nonprofit organization or business association, if the seminar, discussion, or event: is not prerecorded; and features an interactive element between the buyer and host or other buyers contemporaneous with the seminar, discussion, or event; a professional service obtained electronically or delivered through the use of technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities; a product having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities where the purchaser holds a copyright or other intellectual property interest in the product, in whole or in part, if the purchaser uses the product solely for commercial purposes, including advertising or other marketing activities; or computer software or software as a service purchased or licensed solely for commercial purposes in an enterprise computer system, including operating programs or application software for the exclusive use of the enterprise software system, that is housed or maintained by the purchaser or on a cloud server, whether hosted by the purchaser, the software vendor, or a third party. “End user” means any person who receives or accesses a digital code, digital product code, or taxable service described under subsection (m)(14) or (15) of this section for use. “End user” does not include any person who receives a digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section for further commercial broadcast, rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution, or exhibition of the digital product. “Home amenity” means any portion, whether indoors or outdoors, of a residential property, excluding bedrooms or any portion of the property intended for sleeping quarters, that is occupied by the hour and for not more than 15 hours consecutively. “Home amenity rental” means the temporary use in exchange for consideration of a home amenity. “Home amenity rental intermediary” means a person, other than a home amenity rental provider, who facilitates the sale or use of a home amenity and charges a buyer the taxable price for the home amenity rental. For purposes of this subsection, a person shall be considered to facilitate the sale or use of a home amenity if the person brokers, coordinates, or in any other way arranges for the sale or use of a home amenity by a buyer. “Home amenity rental platform” means an Internet–based digital entity that: advertises the availability of home amenities; and receives compensation for facilitating reservations or processing booking transactions on behalf of the owner, operator, or manager of a home amenity. “Marketplace facilitator” means a person that: facilitates a retail sale by a marketplace seller by listing or advertising for sale in a marketplace tangible personal property, digital code, or a digital product; and regardless of whether the person receives compensation or other consideration in exchange for the person’s services, directly or indirectly through agreements with third parties, collects payment from a buyer and transmits the payment to the marketplace seller. “Marketplace facilitator” does not include: a platform or forum that exclusively provides Internet advertising services, including listing products for sale, if the platform or forum does not also engage, directly or indirectly, in collecting payment from a buyer and transmitting that payment to the vendor; a payment processor business appointed by a vendor to handle payment transactions from clients, including credit cards and debit cards, whose only activity with respect to marketplace sales is to handle transactions between two parties; or a delivery service company that delivers tangible personal property on behalf of a marketplace seller that is engaged in the business of a retail vendor and holds a license issued under Subtitle 7 of this title. “Marketplace seller” means a person that makes a retail sale or sale for use through a physical or electronic marketplace operated by a marketplace facilitator. “NAICS” means the North American Industrial Classification System, United States Manual, 2022 Edition, published by the United States Office of Management and Budget. “Permanent” means perpetual or for an indefinite or unspecified length of time. “Person” includes: this State or a political subdivision, unit, or instrumentality of this State; another state or a political subdivision, unit, or instrumentality of that state; and a unit or instrumentality of a political subdivision of this State or of another state. “Prepaid telephone calling arrangement” means the right to use telecommunications services, paid for in advance, that enables the origination of calls using an access number or authorization code, whether manually or electronically dialed. “Primary use location” means the street address representative of where the buyer’s use of a digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section will primarily occur, as determined by: the residential street address or a business street address of the actual end user of the digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section including, if applicable, the address of a donee of the buyer that is designated by the buyer; or if the buyer is not an individual, the location of the buyer’s end users, including employees, or equipment that makes use of the digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section. “Primary use location” does not include the location of a person who is not any end user or who uses a digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section as the purchaser of a separate good or service from the buyer. “Production activity” means: except for processing food or a beverage by a retail food vendor, assembling, manufacturing, processing, or refining tangible personal property for resale; generating electricity for sale or for use in another production activity; laundering, maintaining, or preparing textile products for rental; or laundering, maintaining, or preparing textile products in providing the taxable service of commercial cleaning or laundering of textiles for a buyer who is engaged in a business that requires the recurring service of commercial cleaning or laundering of the textiles; producing or repairing production machinery or equipment; establishing or maintaining clean rooms or clean zones as required by applicable provisions of the Federal Food, Drug, and Cosmetic Act, the Public Health Service Act, and the Virus–Serum–Toxin Act, and the regulations adopted thereunder, pertaining to the manufacture of drugs, medical devices, or biologics; providing for the safety of employees; or providing for quality control. “Production activity” does not include: servicing or repairing tangible personal property, except for servicing or repairing production machinery or equipment; maintaining tangible personal property other than textile products for rental and production machinery and equipment, except for maintaining tangible personal property in providing the taxable service of commercial cleaning or laundering of textiles for a buyer who is engaged in a business that requires the recurring service of commercial cleaning or laundering of the textiles; providing for the comfort or health of employees; or storing the finished product. “Production machinery or equipment” means machinery or equipment used in a production activity. “Retail sale” means the sale of: tangible personal property; a taxable service; a digital code; or a digital product. “Retail sale” includes: a sale of tangible personal property for use or resale in the form of real estate by a builder, contractor, or landowner; except as provided in paragraph (3)(i) of this subsection, use of tangible personal property as facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns, even if the buyer intends to transfer title to the property before or after that use; a sale of a digital product that is sold with rights of permanent use or sold with rights of less than permanent use to an end user; a sale of a digital product that is sold with rights of use conditioned on continued payment by the subscriber or buyer to an end user; and a sale to an end user of a digital code or a subscription to, access to, receipt of, or streaming of a digital product. “Retail sale” does not include: a transfer of title to tangible personal property after its use as facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns, if: at the time of purchase, the buyer is obligated, under the terms of a written contract, to make the transfer; and the transfer is made for the same or greater consideration to the person for whom the buyer manufactures goods or performs work; a sale of tangible personal property, a digital code, or a digital product if the buyer intends to: resell the tangible personal property, digital code, or digital product in the form that the buyer receives or is to receive the property, digital code, or digital product; use or incorporate the tangible personal property, digital code, or digital product in a production activity as a material or part of other tangible personal property or another digital product to be produced for sale; or transfer the tangible personal property, digital code, or digital product as a part of a taxable service transaction; or a sale of a taxable service if the buyer intends to resell the taxable service in the form that the buyer receives or is to receive the service. “Sale” means a transaction for a consideration whereby: title to or possession of property, a digital code, or a digital product is transferred or is to be transferred absolutely or conditionally by any means, including by lease, rental, royalty agreement, or grant of a license for use; or a person performs a service for another person. “Sale” does not include a transaction whereby an employee performs a service for the employee’s employer. “Sale for use” means a sale in which tangible personal property, a digital code, a digital product, or a taxable service that is consumed, possessed, stored, or used in the State is acquired. “Short–term rental” means the temporary use of a short–term rental unit to provide accommodation to transient guests for lodging purposes in exchange for consideration. “Short–term rental platform” means an Internet–based digital entity that: advertises the availability of short–term rental units for rent; and receives compensation for facilitating reservations or processing booking transactions on behalf of the owner, operator, or manager of a short–term rental unit. “Short–term rental unit” means a residential dwelling unit or a portion of the unit used for short–term rentals. “Short–term rental unit” includes a single–family house or dwelling, a multifamily house or dwelling, an apartment, a condominium, or a cooperative. “Subscription” means, with respect to a digital product, an arrangement with a vendor that grants a buyer the right to obtain digital products from within one or more product categories having the same tax treatment, in a fixed quantity or for a fixed period of time or both. “Tangible personal property” means: corporeal personal property of any nature; an accommodation; a short–term rental; or a home amenity rental. “Tangible personal property” includes: farm equipment; wall–to–wall carpeting that is installed into real estate, regardless of the purpose, method, or permanency of its installation; and coal, electricity, oil, nuclear fuel assemblies, steam, and artificial or natural gas. “Taxable price” means the value, in money, of the consideration of any kind that is paid, delivered, payable, or deliverable by a buyer to a vendor in the consummation and complete performance of a sale without deduction for any expense or cost, including the cost of: any labor or service rendered; any material used; or any property, digital code, or digital product sold. “Taxable price” includes, for tangible personal property, a digital code, or a digital product acquired by a sale for use in the State by the person who assembles, fabricates, or manufactures the property or digital product, only the price of the raw materials and component parts contained in the property or digital product. “Taxable price” does not include: a charge that is made in connection with a sale and is stated as a separate item of the consideration for: a delivery, freight, or other transportation service for delivery directly to the buyer by the vendor or by another person acting for the vendor, unless the transportation service is a taxable service; a finance charge, interest, or similar charge for credit extended to the buyer; a labor or service for application or installation; a mandatory gratuity or service charge in the nature of a tip for serving food or beverage to a group of 10 or fewer individuals for consumption on the premises of the vendor; a professional service; a tax: imposed by a county on the sale of coal, electricity, oil, nuclear fuel assemblies, steam, or artificial or natural gas; imposed under § 3–302(a) of the Natural Resources Article, as a surcharge on electricity, and added to an electric bill; imposed under §§ 6–201 through 6–203 of the Tax – Property Article, on tangible personal property subject to a lease that is for an initial period that exceeds 1 year and is noncancellable except for cause; or imposed under § 4–102 of this article on the gross receipts derived from an admissions and amusement charge; any service for the operation of equipment used for the production of audio, video, or film recordings; or reimbursement of incidental expenses paid to a third party and incurred in connection with providing a taxable detective service; the value of a used component or part (core value) received from a purchaser of the following remanufactured truck parts: an air brake system; an engine; a rear axle carrier; or a transmission; a charge for a nontaxable service that is made in connection with a sale of a taxable communication service, even if the nontaxable charges are aggregated with and not separately stated from the taxable charges for communications services, if the vendor can reasonably identify charges not subject to tax from its books and records that are kept in the regular course of business; a transportation network company impact fee imposed under § 10–408 of the Public Utilities Article; or an amount not exceeding 2 cents collected due to rounding the price for a good or service in accordance with Title 1, Subtitle 6 of the Business Regulation Article. “Taxable price” includes all sales and charges, including insurance, freight handling, equipment and supplies, delivery and pickup, cellular telephone, and other accessories, but not including sales of motor fuel subject to the motor fuel tax, made in connection with: a short–term vehicle rental, as defined in § 11–104(c) of this subtitle; or a shared motor vehicle used for peer–to–peer car sharing and made available on a peer–to–peer car sharing program, as defined in § 19–520 of the Insurance Article. “Taxable price” includes: for the sale or use of an accommodation facilitated by an accommodations intermediary or a short–term rental platform, the full amount of the consideration paid by a buyer for the sale or use of an accommodation, but not including any tax that is remitted to a taxing authority; and for the sale or use of a home amenity rental facilitated by a home amenity rental intermediary or home amenity rental platform, the full amount of consideration paid by a buyer for the sale or use of a home amenity rental, but not including any tax that is remitted to a taxing authority. “Taxable price” does not include: for the sale or use of an accommodation facilitated by an accommodations intermediary or a short–term rental platform, a commission paid by an accommodations provider to a person after facilitating the sale or use of an accommodation; or for the sale or use of a home amenity rental facilitated by a home amenity rental intermediary or home amenity rental platform, a commission paid by a home amenity rental provider to a person after facilitating the sale or use of a home amenity rental. “Taxable service” means: fabrication, printing, or production of tangible personal property or a digital product by special order; commercial cleaning or laundering of textiles for a buyer who is engaged in a business that requires the recurring service of commercial cleaning or laundering of the textiles; cleaning of a commercial or industrial building; cellular telephone or other mobile telecommunications service; “900”, “976”, “915”, and other “900”–type telecommunications service; custom calling service provided in connection with basic telephone service; a telephone answering service; pay per view television service; credit reporting; a security service, including: a detective, guard, or armored car service; and a security systems service; a transportation service for transmission, distribution, or delivery of electricity or natural gas, if the sale or use of the electricity or natural gas is subject to the sales and use tax; a prepaid telephone calling arrangement; the privilege given to an individual under § 4–1102 of the Alcoholic Beverages and Cannabis Article to consume wine that is not purchased from or provided by a restaurant, club, or hotel; a data or information technology service described under NAICS Sector 518, 519, or 5415; or a system software or application software publishing service described under NAICS Sector 5132. “Telephone answering service” means a service provided to a customer that consists exclusively of the taking of messages, either by an automated system or by a live operator, and transmitting the messages to the customer. “Telephone answering service” does not include the physical act of answering a telephone on behalf of a customer, if the act is incidental to and less than 5% of the service provider’s total gross receipts in a calendar year. “Use” means an exercise of a right or power to use, consume, possess, or store that is acquired by a sale for use of: tangible personal property; a taxable service; a digital code; or a digital product. “Use” includes an exercise of a right or power to use, consume, possess, or store that is acquired by a sale for use of tangible personal property, a digital code, or a digital product: for use or resale in the form of real estate by a builder, contractor, or landowner; or except as provided in paragraph (3)(i) of this subsection, as facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns, even if the buyer intends to transfer title to the property, digital code, or digital product before or after that use. “Use” does not include: a transfer of title to tangible personal property after its use as facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns, if: at the time of purchase, the buyer is obligated, under the terms of a written contract, to make the transfer; and the transfer is made for the same or greater consideration to the person for whom the buyer manufactures goods or performs work; an exercise of a right or power over tangible personal property, a digital code, or a digital product acquired by a sale for use if the buyer intends to: resell the tangible personal property, digital code, or digital product in the form that the buyer receives or is to receive the property, digital code, or digital product; use or incorporate the tangible personal property or digital product in a production activity as a material or part of other tangible personal property or another digital product to be produced for sale; or transfer the tangible personal property, digital code, or digital product as part of a taxable service transaction; an exercise of a right or power over a taxable service acquired by a sale for use if the buyer intends to resell the taxable service in the form that the buyer receives or is to receive the service; an exercise of a right or power over a digital code to receive or access a digital product; an exercise of a right or power over a digital product acquired by a sale for use if the buyer is not an end user; or the use or transfer of a digital product or digital code by the transferor and obtained by the end user free of charge. “Vendor” means a person who: engages in the business of an out–of–state vendor, as defined in § 11–701 of this title; engages in the business of a retail vendor, as defined in § 11–701 of this title; holds a special license issued under § 11–707 of this title; is an accommodations intermediary or a home amenity rental intermediary; is a short–term rental platform or home amenity rental platform; engages in the business of a marketplace facilitator; or engages in the business of a marketplace seller. “Vendor” includes, for an out–of–state vendor, a salesman, representative, peddler, or canvasser whom the Comptroller, for the efficient administration of this title, elects to treat as an agent jointly responsible with the dealer, distributor, employer, or supervisor: under whom the agent operates; or from whom the agent obtains the tangible personal property, a digital code, a digital product, or taxable service for sale.

Except as otherwise provided in this title, a tax is imposed on: a retail sale in the State; and a use, in the State, of tangible personal property, a digital code, a digital product, or a taxable service. Subject to paragraph (2) of this subsection, in addition to the tax imposed under subsection (a) of this section, a hotel surcharge is imposed in Dorchester County on the sale of a right to occupy a room or lodgings as a transient guest in an establishment that offers at least 380 rooms. The hotel surcharge imposed under paragraph (1) of this subsection may not be imposed if the Maryland Economic Development Corporation certifies to the Comptroller that the bonds issued by the Maryland Economic Development Corporation secured by the Dorchester County Economic Development Fund established under § 10–130 of the Economic Development Article have been paid in full. A county, municipal corporation, special taxing district, or other political subdivision of the State may not impose any retail sales or use tax except: a sales tax or use tax that was in effect on January 1, 1971; a tax on the sale or use of: fuels; utilities; space rentals; or any controlled dangerous substance, as defined in § 5–101 of the Criminal Law Article, unless the sale is made by a person who registers under and complies with Title 5, Subtitle 3 of the Criminal Law Article; or a tax imposed by a code county on the sale or use of food and beverages authorized under § 20–602 of the Local Government Article. Paragraph (1) of this subsection may not be construed as conferring authority to impose a sales and use tax.

A rebuttable presumption exists that any sale in the State is subject to the sales and use tax imposed under § 11–102(a)(1) of this subtitle. The person required to pay the sales and use tax has the burden of proving that a sale in the State is not subject to the sales and use tax. The retail sale of a digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this subtitle shall be presumed to be made in the state in which the customer tax address is located.

Except as otherwise provided in this section, the sales and use tax rate is: for a taxable price of less than $1: 1 cent if the taxable price is 20 cents; 2 cents if the taxable price is at least 21 cents but less than 34 cents; 3 cents if the taxable price is at least 34 cents but less than 51 cents; 4 cents if the taxable price is at least 51 cents but less than 67 cents; 5 cents if the taxable price is at least 67 cents but less than 84 cents; and 6 cents if the taxable price is at least 84 cents; and for a taxable price of $1 or more: 6 cents for each exact dollar; and for that part of a dollar in excess of an exact dollar: 1 cent if the excess over an exact dollar is at least 1 cent but less than 17 cents; 2 cents if the excess over an exact dollar is at least 17 cents but less than 34 cents; 3 cents if the excess over an exact dollar is at least 34 cents but less than 51 cents; 4 cents if the excess over an exact dollar is at least 51 cents but less than 67 cents; 5 cents if the excess over an exact dollar is at least 67 cents but less than 84 cents; and 6 cents if the excess over an exact dollar is at least 84 cents. If a retail sale of tangible personal property or a taxable service is made through a vending or other self–service machine, the sales and use tax rate is 6%, applied to 94.5% of the gross receipts from the vending machine sales. In this subsection: “short–term vehicle rental” means a rental of a passenger car, as defined in § 11–144.2 of the Transportation Article, or a vehicle that may be registered as a Class D, E, F, G, or M vehicle under Title 13, Subtitle 9 of the Transportation Article, for a period of 180 days or less under the following terms: the vendor does not provide a driver for the vehicle as a part of the rental; and if the vehicle is a passenger car, as defined in § 11–144.2 of the Transportation Article, a multipurpose passenger vehicle, or a motorcycle, the vehicle is not to be used to transport individuals or property for hire; and “short–term vehicle rental” does not include a rental of: a dump truck, as described in § 13–919 of the Transportation Article; a tow truck, as described in § 13–920 of the Transportation Article; a farm vehicle exempt from the sales and use tax under § 11–201(a) of this title; or a shared motor vehicle used for peer–to–peer car sharing and made available on a peer–to–peer car sharing program, as defined in § 19–520 of the Insurance Article and that is subject to sales and use tax under subsection (c–1) of this section. The sales and use tax rate for a short–term vehicle rental for a taxable price of $2 or more is: if the vehicle is a passenger car, a multipurpose passenger vehicle, or a motorcycle: 23 cents for each exact multiple of $2; and for that part of $2 in excess of an exact multiple of $2: 1 cent if the excess over an exact multiple of $2 is at least 1 cent but less than 9 cents; 2 cents if the excess over an exact multiple of $2 is at least 9 cents but less than 18 cents; 3 cents if the excess over an exact multiple of $2 is at least 18 cents but less than 27 cents; 4 cents if the excess over an exact multiple of $2 is at least 27 cents but less than 35 cents; 5 cents if the excess over an exact multiple of $2 is at least 35 cents but less than 44 cents; 6 cents if the excess over an exact multiple of $2 is at least 44 cents but less than 53 cents; 7 cents if the excess over an exact multiple of $2 is at least 53 cents but less than 61 cents; 8 cents if the excess over an exact multiple of $2 is at least 61 cents but less than 70 cents; 9 cents if the excess over an exact multiple of $2 is at least 70 cents but less than 79 cents; 10 cents if the excess over an exact multiple of $2 is at least 79 cents but less than 87 cents; 11 cents if the excess over an exact multiple of $2 is at least 87 cents but less than 96 cents; 12 cents if the excess over an exact multiple of $2 is at least 96 cents but less than $1.05; 13 cents if the excess over an exact multiple of $2 is at least $1.05 but less than $1.14; 14 cents if the excess over an exact multiple of $2 is at least $1.14 but less than $1.22; 15 cents if the excess over an exact multiple of $2 is at least $1.22 but less than $1.31; 16 cents if the excess over an exact multiple of $2 is at least $1.31 but less than $1.40; 17 cents if the excess over an exact multiple of $2 is at least $1.40 but less than $1.48; 18 cents if the excess over an exact multiple of $2 is at least $1.48 but less than $1.57; 19 cents if the excess over an exact multiple of $2 is at least $1.57 but less than $1.66; 20 cents if the excess over an exact multiple of $2 is at least $1.66 but less than $1.74; 21 cents if the excess over an exact multiple of $2 is at least $1.74 but less than $1.83; 22 cents if the excess over an exact multiple of $2 is at least $1.83 but less than $1.92; and 23 cents if the excess over an exact multiple of $2 is at least $1.92 but less than $2.00; or if the vehicle is a vehicle that may be registered as a Class E, F, or G vehicle under Title 13, Subtitle 9 of the Transportation Article: 8 cents for each exact dollar; and 2 cents for each 25 cents or part of 25 cents in excess of an exact dollar. The sales and use tax rate for sales and charges made in connection with a shared motor vehicle used for peer–to–peer car sharing and made available on a peer–to–peer car sharing program, as defined in § 19–520 of the Insurance Article, is: except as provided in item (2) of this subsection, 8% of the taxable price; and 5% of the taxable price, if the vehicle is a passenger car, a multipurpose passenger vehicle, or a motorcycle that is part of a fleet of vehicles that includes more than 10 vehicles owned by the same person. The sales and use tax rate for the first retail sale of a manufactured home, as defined in § 12–301(g) of the Public Safety Article, is the rate imposed under subsection (a) of this section applied to 60% of the taxable price. The rate of the hotel surcharge imposed under § 11–102(b) of this subtitle is 2.5% of the taxable price. In this subsection, “modular building” includes single–family or multifamily houses, apartment units, or commercial buildings, and permanent additions to single–family or multifamily houses, apartment units, or commercial buildings, comprised of one or more sections that are: intended to become real property; primarily constructed at a location other than the permanent site at which they are to be assembled; built to comply with the standards for industrialized buildings under Title 12, Subtitle 3 of the Public Safety Article; and shipped with most permanent components in place. The sales and use tax rate for the sale of a modular building is the rate imposed under subsection (a) of this section applied to 60% of the taxable price. The sales and use tax rate for the sale of an alcoholic beverage, as defined in § 5–101 of this article, is: 9% of the charge for the alcoholic beverage; and 6% of a charge that is made in connection with the sale of an alcoholic beverage and is stated as a separate item of the consideration and made known to the buyer at the time of sale for: any labor or service rendered; any material used; or any property sold. In this subsection the following words have the meanings indicated. “Dyed diesel fuel” means diesel fuel that is dyed under U.S. Environmental Protection Agency rules for high sulfur diesel fuel or is dyed under Internal Revenue Service rules for nontaxable use. “Marina” means a person who maintains a place of business where motor fuel is sold primarily to vessels. If a retail sale of dyed diesel fuel is made by a marina, the sales and use tax rate is 6%, applied to 94.5% of the gross receipts from the dyed diesel fuel sales. The sales and use tax rate for a mandatory gratuity or service charge in the nature of a tip for serving food or any type of beverage to a group of more than 10 individuals is 6%. In this subsection, the following words have the meanings indicated. “Electronic smoking device” has the meaning stated in § 16.7–101 of the Business Regulation Article. “Tobacco pipe” means a pipe made primarily of meerschaum, wood, or porcelain, with a bowl designed to be used without a screen or filter. “Vaping liquid” has the meaning stated in § 16.7–101 of the Business Regulation Article. Except as provided in paragraph (3) of this subsection, the sales and use tax rate is 20% of the taxable price for electronic smoking devices. The sales and use tax for vaping liquid sold in a container that contains 5 milliliters or less of vaping liquid is 60% of the taxable price. The sales and use tax for tobacco pipes is 12% of the taxable price. The sales and use tax rate for cannabis, as defined in § 1–101 of the Alcoholic Beverages and Cannabis Article is: for fiscal years 2024 through 2025, 9%; and for fiscal year 2026 and each fiscal year thereafter, 12%. The sales and use tax for a sale of a taxable service described under § 11–101(m)(14) and (15) of this subtitle is 3% of the taxable price. If a different rate from the rate specified under paragraph (1) of this subsection could be applied to a sale or use of tangible personal property, a digital code, a digital product, or a taxable service, the higher rate shall apply to the sale.

Except as provided in subsections (b), (c), and (d) of this section, a vendor who timely files a sales and use tax return is allowed, for the expense of collecting and paying the tax, a credit equal to 0.9% of the gross amount of sales and use tax that the vendor is to pay to the Comptroller. The credit allowed under this section does not apply to any sales and use tax that a vendor is required to pay to the Comptroller for any purchase or use that the vendor makes that is subject to the tax. Subject to paragraph (2) of this subsection, the credit allowed under this section is 1.2% of the first $6,000 of the gross amount of sales and use tax that the vendor is to pay with each return. For a vendor who files or is eligible to file a consolidated return under § 11–502 of this title, the credit allowed under paragraph (1) of this subsection is 1.2% of the first $6,000 of the gross amount of sales and use tax that the vendor is or would be required to pay with the consolidated return. The credit allowed under subsection (a) of this section may not exceed $500 for each return. For a vendor who files or is eligible to file a consolidated return under § 11–502 of this title, the total maximum credit that the vendor is allowed under this section for all returns filed for any period is $500. In this subsection the following words have the meanings indicated. “Qualified job training organization” means an organization that: is located in the State; is exempt from taxation under § 501(c)(3) of the Internal Revenue Code; conducts retail sales of donated items; provides job training and employment services to individuals with workplace disadvantages or disabilities; and uses a majority of its revenue for job training and job placement programs: that assist individuals with growth in employment hours; for individuals with low income, workplace disadvantages, disabilities, or barriers to employment; or for veterans. “Secretary” means the Secretary of Labor. Subject to subparagraphs (ii) and (iii) of this paragraph, a vendor who is a qualified job training organization certified under paragraph (3) of this subsection and timely files a sales and use tax return is allowed a credit equal to 100% of the gross amount of sales and use tax that the vendor is to pay to the Comptroller. A vendor who claims a credit under subparagraph (i) of this paragraph may not claim a credit under subsections (a) through (c) of this section. For any calendar year, the total amount of credits that a vendor may claim may not exceed $100,000. A vendor may apply to the Secretary to be certified as a qualified job training organization. Within 30 days of receiving the application, the Secretary shall review the application and if the vendor: is determined to be a qualified job training organization, certify the vendor as a qualified job training organization and notify the vendor and the Comptroller; or is determined not to be a qualified job training organization, notify the vendor. On or before January 31 each year, a vendor who claims a credit under this subsection shall submit to the Secretary a report that includes, for the previous calendar year: the amount of credits claimed; the amount spent by the vendor on job training and employment services; and the number of individuals receiving job training and employment services. The Comptroller shall adopt regulations to implement this subsection.

In this section, “Agreement” means the Streamlined Sales and Use Tax Agreement as adopted by the member states of the Streamlined Sales and Use Tax Project on November 12, 2002. Subject to the provisions of this subsection, the State of Maryland hereby adopts the Streamlined Sales and Use Tax Agreement as adopted by the member states of the Streamlined Sales and Use Tax Project on November 12, 2002. The adoption of the Agreement by the State of Maryland as provided in this section is contingent on the enactment of legislation by the U.S. Congress consenting to the Agreement and authorizing states that are parties to the Agreement to require remote sellers to collect and remit the sales and use taxes of those states. Within 90 days after the enactment of legislation by the U.S. Congress consenting to the Agreement and authorizing states that are parties to the Agreement to require remote sellers to collect and remit the sales and use taxes of those states, the Comptroller shall prepare and submit to the Governor and, subject to § 2-1257 of the State Government Article, the Senate Budget and Taxation Committee and the House Committee on Ways and Means proposed regulations and draft legislation that: identify and implement: any changes to State statutes, regulations, or policies that need to be made in order to bring the State into compliance with the Agreement; and any other changes to State laws that would not be required but that the Comptroller recommends should reasonably be made in connection with implementing the Agreement; and for each change identified under item (i) of this paragraph: estimates the impact of that change on State sales and use tax revenue; and identifies and explains any fiscal or policy issues that would be associated with the change. Notwithstanding the adoption of the Agreement under this section, unless and until further legislation is enacted by the General Assembly to implement necessary changes to bring the State in compliance with the Agreement: no provision of the Agreement in whole or in part invalidates or amends any provision of the law of this State; adoption of the Agreement does not amend or modify any other provision of this title or other law of this State; and implementation of any condition of the Agreement in this State, whether adopted before, at, or after adoption of the Agreement by this State, must be by the action of this State. The Agreement adopted by this section binds and inures only to the benefit of this State and the other member states. No person, other than a member state, is an intended beneficiary of the Agreement. Any benefit to a person other than a state must be established by the law of this State and the other member states and not by the terms of the Agreement. No person shall have any cause of action or defense under the Agreement or by virtue of the State’s adoption of the Agreement. No person may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, or other instrumentality of this State, or any political subdivision of this State, on the ground that the action or inaction is inconsistent with the Agreement. No law of this State, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the Agreement.

The sale or recharge of a prepaid telephone calling arrangement is taxable in the State if: the sale or recharge takes place at the vendor’s place of business located in the State; the buyer’s shipping address is in the State; or there is no item shipped, but the buyer’s billing address or the location associated with the buyer’s mobile telephone number is in the State.

The Comptroller shall publish on the Comptroller’s website, as a general guide for vendors, a comprehensive list of tangible personal property and services the sale or use of which are subject to the sales and use tax. The Comptroller shall update the list published in accordance with subsection (a) of this section at least quarterly and detail any additions, deletions, or revisions to the list.