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§ 11-219. Services, generally

West's Annotated Code of MarylandTax-GeneralEffective: May 30, 2021

West's Annotated Code of Maryland
Tax-General (Refs & Annos)
Title 11. Sales and Use Tax (Refs & Annos)
Subtitle 2. Exemptions (Refs & Annos)
Effective: May 30, 2021
MD Code, Tax - General, § 11-219
§ 11-219. Services, generally
Currentness
Personal, professional, or insurance service
(a) The sales and use tax does not apply to a personal, professional, or insurance service that:
(1) is not a taxable service; and
(2) involves a sale as an inconsequential element for which no separate charge is made.
Computer software services
(b) The sales and use tax does not apply to a sale of custom computer software, regardless of the method transferred or accessed, or a service relating to custom computer software that:
(1) would otherwise be taxable under this title;
(2) is to be used by a specific person;
(3)(i) is created for that person; or
(ii) contains standard or proprietary routines requiring significant creative input to customize, configure, or modify the procedures and programs that are necessary to perform the functions required for the software to operate as intended; and
(4) do not constitute a program, procedure, or documentation that is mass produced and sold to:
(i) the general public; or
(ii) persons engaged in a trade, profession, or industry, except as provided in item (3) of this subsection.
Computer software maintenance contracts
(c) The sales and use tax does not apply to the sale of an optional computer software maintenance contract if the buyer does not have a right, as part of the contract, to receive at no additional cost software products that are separately priced and marketed by the vendor.
Prepaid telephone calling arrangements
(d) The sales and use tax does not apply to the use of a taxable service obtained by using a prepaid telephone calling arrangement.

Credits

Added as Tax-General § 11-218 by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Renumbered as Tax-General § 11-219 by Acts 1988, c. 337, § 1. Amended by Acts 1992, 1st Sp. Sess., c. 1, § 2; Acts 1995, c. 129, § 1, eff. July 1, 1995; Acts 1999, c. 688, § 1, eff. Jan. 1, 2000; Acts 2007, 1st Sp. Sess., c. 3, § 3, eff. July 1, 2008; Acts 2008, c. 10, § 3, eff. July 1, 2008; Acts 2021, c. 669, § 1, eff. May 30, 2021.
Formerly Art. 81, §§ 326, 375.
MD Code, Tax - General, § 11-219, MD TAX GENERAL § 11-219
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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