Maryland Sales Tax Holiday!

June 11, 2010 | Subscribe to our RSS Feed

Maryland will sponsor a tax-free period for qualifying apparel and footwear on August 8-14, 2010.

From August 8th through 14th, qualifying clothing and footwear priced $100 or less will be exempt from Maryland’s six percent sales tax.

“Clothing or footwear” means an article of apparel designed to be worn on or about the human body.

What is exempt?

The sales and use tax is not due on the sale of a qualifying article of clothing or footwear if:

• The sales price of the article is $100 or less; and
• The sale takes place during a period beginning at 12:01 a.m. on Sunday, August 8, 2010 and ending at 12 midnight on Saturday, August 14, 2010.

The exemption applies to each qualifying item selling for $100 or less, regardless of how many items are sold at the same time. For example, if a customer purchases two shirts for $80 each, both items qualify for the exemption, even though the customer’s total purchase price ($160) exceeds $100.

What will not qualify (and be taxed)?

The exemption does not apply to:

• Accessory items, even if they are priced at $100 or less.  “Accessory items” include but are not limited to jewelry, watches, watchbands, handbags, handkerchiefs, umbrellas, scarves, ties, headbands, and belt buckles;
• The first $100 of a more expensive single article or set (as in a suit) of clothing or footwear. For example, if a customer buys a pair of pants costing $110, sales tax is due on the entire $110;
• Any special clothing or footwear primarily designed for protective use or not intended for everyday use.

A list of exempt and taxable items is available on the Comptroller’s Web site at www.marylandtaxes.com, or by calling the Taxpayer Service Section at 410-260-7980 in Central Maryland or toll-free 1-800-MD TAXES from elsewhere.

Questions?

sam.cohen@glassjacobson.com