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Frequently Asked Questions About the Sales and Use Tax

17 - I am a manufacturer of the products I sell. How do I claim exemption on items purchased for use in production activities?

When purchasing manufacturing machinery and equipment, you need only provide the seller with a certification letter that the equipment will be used predominantly in a production activity. The certification should be retained by the seller with the record of sale. Items purchased which are consumed during the manufacturing process may be purchased tax free by issuing vendors a resale certificate.

Manufacturers claiming exemption on the purchase of utilities to run the exempt equipment must complete Form ST 206. You can also obtain Form ST 206 by contacting the Comptroller's Taxpayer Service Section at 410-260-7980, or toll-free 1-800-638-2937 from elsewhere in Maryland, Monday - Friday, 8:00 a.m. - 5:00 p.m. EDT.



 
Links for Sales and Use Tax FAQs
Taxpayer Assistance
Frequently Asked Questions
Business Tax FAQs
Sales and Use Tax
Sales and Use Tax FAQs
  1 - What is included in the taxable price?
  2 - How is the tax applied to sales of cigarettes?
  3 - Are there any limitations on the interest deduction?
  4 - Are store coupons included in the taxable price?
  5 - Are warranty charges taxable?
  6 - Are shipping and handling charges subject to the sales tax?
  7 - Are all labor charges exempt?
  8 - What is the difference between repair and fabrication labor?
  9 - I am an out-of-state vendor who makes sales in Maryland. Do I need to register to collect the sales and use tax?
  10 - My nonprofit 501(c)(3) organization does not have a location in Maryland, but we will be attending a conference in your state. Do we qualify for a sales tax exemption on our purchases of food, beverages, and accommodations during our stay?
  11 - Does the sales and use tax apply to rentals of tangible personal property?
  12 - How can I obtain a resale certificate?
  13 - I am a government contractor. Am I entitled to an exemption on my purchases of materials and supplies?
  14 - How can I obtain a tax ID number to give to vendors when I make a purchase for resale?
  15 - Has the Maryland General Assembly provided for tax free shopping periods?
  17 - I am a manufacturer of the products I sell. How do I claim exemption on items purchased for use in production activities?
  16 - How can I determine if a church or other nonprofit organization qualifies for exemption on its purchases?
  18 - Can I make "tax-included" sales?
  19 - How do I change the name of my business for my tax records?
 
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