The Maryland Comptroller of Public Accounts issued guidance interpreting 2020 H.B. 932, entitled the 21st-Century Economy Fairness Act. Effective March 14, 2021, the act expanded the sales and use tax to sales and uses of digital products. Pursuant to its guidance, the Comptroller will apply tax to a variety of digital products – including e-books, motion pictures, sound files, and video games – regardless of whether they are downloaded or streamed by the customer. The Comptroller will also apply tax to sales of canned or commercial off-the-shelf software, if obtained electronically by the buyer, as well as sales of software as a service (SaaS).
