Multistate Tax Commission/Association of Fund-Raising Distributors & Suppliers   Maryland

Agency: Comptroller of Maryland

Contact Person/Department: Louise D. Collins

Tel. No.: (410) 260-7292

Fax No.: (410) 974-2968

E-mail: lcollins@comp.state.md.us

  1. If your State exempts fundraising sales by certain groups from sales or use taxes, please indicate which of the following are exempt in your State.

    Public Schools (K-12) - Not Exempt

    Private Schools (K-12) - Not Exempt

    School Groups (e.g., clubs, bands, teams) - Not Exempt

    PTAs - Not Exempt

    PTOs - Not Exempt

    Other parent groups - Not Exempt

    (please identify)

    Church Groups - Exempt

    Youth Sports League - Not Exempt

    501 (c)(3) organizations - Exempt if organization is religious in nature

    501 (c)(6) organizations - Not Exempt

    Other (specify:__________________)

    1a Are local sales and use taxes in your State applied to these groups in the same manner as State sales and use taxes are applied to these groups?

    N/A

    1b Please set forth any comments including a list of groups not listed above whose fundraising activities are exempt from sales and use taxation in your State.

    A hospital thrift shop that sells ONLY donated items, is operated by volunteer staff, and contributes the profit to the hospital it is associated with is not required to collect sales and use tax.

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  3. If your State exempts fundraising sales of certain products from sales and use tax, please indicate which of the following products are exempt.

    Candies and Confections - Not Exempt

    Candy/Chocolate coated nuts - Not Exempt

    Caramel coated popcorn - Not Exempt

    Cookies and Other Baked Goods - Exempt

    Cheese Products - Exempt

    Meat Products - Exempt

    Nuts, popcorn and other snack food - Exempt

    Other edible items (please identify)

    Magazine subscriptions - Exempt (PTO/PTA only)

    Paper products (e.g., calendars, cards stationery, books, gift wrap) - Not Exempt

    Decorative tins, baskets, other containers - Not Exempt

    Decorative novelties (mugs, ornaments) - Not Exempt

    Stationery, books, gift wrap - Not Exempt

    Sundry items (please specify item below) - Not Exempt

    Clothing and accessories - Not Exempt

    Jewelry - Not Exempt

    Plant and seeds - Exempt (vegetables)/ Not Exempt (flowers)

    Other hard good items - Not Exempt

    2a Are local sales and use taxes in your State applied to these products in the same manner as State sales and use taxes are applied to these products?

    N/A

    2b Please set forth any comments including a list of products not listed above that are exempt from sales and use taxation for fundraising purposes in your State.

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  5. If some or all fundraising groups or products qualify for exemption from sales and use tax in your State, please indicate any exceptions to or limitations on such exemptions. (Check all that apply and specify the limitation.)

    Limits on number of fundraiser events per year

    Limits on duration of fundraisers

    Limits on dollar amount of each item

    Limits on total amounts raised per year

    Other_________________________________

    There are no limitations.

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  7. If some or all fundraising groups qualify for exemption from sales and use tax in your State, please set forth the procedure through which a group may establish its qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

    The group is required to complete a Combined Registration Application and submit it with a copy of their Articles of Incorporation, its favorable 501 (c)(3) Determination Letter, and ByLaws.

    (See Attachment I) (Section 11-204, Tax General Article Annotated Code of Maryland.)

  8.  

  9. If some or all fundraising products qualify for exemption from sales and use tax in your State, please set forth the procedure for establishing a product's qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

    Sales of groceries (i.e. pizza kits, sausage and cheese variety packs, Girl Scout cookies) are generally not subject to tax. The tax does not apply to sales of food by a non-profit vendor who provides no facilities for consumption of food sold. (See Attachment II). section 11-206, Tax-General Article, Annotated Code of Maryland.

  10.  

  11. In instances where a fundraising product or group is not exempt from sales or use tax, please indicate who bears the responsibility for collecting and remitting the tax.

    The fundraising group (e.g. PTAs, booster clubs, community associations).

  12.  

  13. In instances where a fundraising product or group is not exempt from sales or use tax, what is the basis for calculating the sales/use tax?

    Price paid by consumer to fundraising group.

  14.  

  15. Provide any additional information regarding the sales and use tax treatment of fundraising transactions and/or groups in your State. Also set forth any statements, disclosures, disclaimers, etc.,to be provided as part of the clearinghouse regarding your state's practices and procedures. Attach additional sheets if necessary.

Non-profit organizations (other than those of a religious nature) are required to apply for a Sales and use tax license when engaging in fundraising activities whereby tangible personal property is being sold. The license number is used to make tax free purchases for resale. The license can be obtained by completion of our Combined Registration Application or by applying for a 30 day permit through our Special Events Section. Neither registration requires a fee.

Churches and other organizations of a religious nature may use the exemption certificate number on a resale certificate and need not apply for a license or permit.

Last Updated: September 2005