On June 3, 2021, Chris Moran was quoted in Bloomberg Law on the release of new guidance regarding Maryland’s tax on digital products.
According to the article, the Maryland General Assembly passed the tax last year during the height of the pandemic, overriding Governor Larry Hogan's veto, to raise revenue for its education overhaul. The tax is estimated to raise $83 million in its first full year and increase over time.
The guidance addresses sourcing methods for over a dozen different digital products. It offers exemptions for custom-built software, groups like state agencies and parent-teacher organizations, among other areas.
“The Comptroller went into a lot of detail and provided several helpful examples illustrating how the tax applies to educational classes, seminars, or conferences delivered electronically,” said Moran. “This guidance is particularly important given the increasing prominence of remote instruction.”