In the state of Maryland, there are several scenarios in which a business must collect and pay sales and use taxes. Even if a company does not have any taxable sales in a given quarter, it must still file a report by the 21st of the month following the end of that quarter. Sales taxes can be paid quarterly for businesses that have $750 or less in sales taxes owed.
However, if a company has a tax liability of more than $750, it is necessary to submit sales taxes every month. Sales taxes must be collected from customers in any state in which a company has sufficient contacts such as employees or an actual place of business. If a representative of the company takes orders in another state, sales taxes must be collected. In the event that an item is purchased outside of Maryland and brought into the state, use taxes may need to be paid.
The state issues a 6 percent tax, and there is an exemption available for items that a person buys with the intent to resell it. If a person has a use tax liability of more than $100 per month, the tax must be paid each month. If the tax is under $100, it can be paid quarterly instead.
Those who are subject to tax must generally pay it by a specified date. Failure to do so could result in additional financial or other penalties. In some cases, failure to pay taxes could result in an audit. Anyone who is selected for a tax audit may wish to have the representation of an attorney.