# Tax - General (GTG)

## Title 11. Sales and Use Tax

### Subtitle 2. Exemptions

#### Section 11-247

(a)

  (1) In this section, "affiliated group" has the meaning stated under Sec. 1504 of the Internal Revenue Code and includes related parties described under Sec. 267(b)(10), (11), or (12) of the Internal Revenue Code.

  (2) For the purposes of this subsection:

    (i) all references to a corporation or partnership under Sec. 267(b)(10) of the Internal Revenue Code include an S corporation; and

    (ii) all references to an S corporation under Sec. 267(b)(10), (11), and (12) of the Internal Revenue Code include a qualified Subchapter S corporation subsidiary.

(b) The sales and use tax imposed on a taxable service described under Sec. 11-101(m)(14) or (15) of this title or a digital code or digital product does not apply to a sale if both the vendor and the buyer are members of the same affiliated group.

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Md. Code Ann., Tax-Gen. (as displayed at mgaleg.maryland.gov, October 16, 2026)