Maryland

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.

 

2. 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.

 

3. 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.

 

4. 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.)

 

5. 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.

 

6. 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).

 

7. 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.

 

8. 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