Comptroller Proposes Online Sales Tax Regs

Comptroller Peter Franchot has submitted emergency regulations to the Joint Committee on Administrative, Executive, and Legislative Review in light of the South Dakota v. Wayfair decision. This decision reversed a 1992 ruling on Quill Corp. v. North Dakota that said sellers only had to collect state sales taxes if they had a warehouse, office or sales representative in the state.

A key element of the Supreme Court’s decision to uphold the South Dakota law was that the law wasn’t overly broad, and therefore did not impose an undue burden on interstate commerce.  These regulations borrow some elements of the South Dakota law, specifically creating a safe harbor for those who transact only limited business in Maryland.

As reported by The Daily Record,

The new sales tax regulations — less than a full page — would impose a 6 percent sales tax on online retailers who either have a minimum of 200 transactions in Maryland or sales on taxable goods and services in the state exceeding $100,000 annually.

The regulations will be published in the Maryland Register later this month.

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