Avalara Taxrates > Blog > Sales Tax News > Maryland Sales and Use Tax Exemptions Support Education - Avalara

Maryland Sales and Use Tax Exemptions Support Education


 Maryland lawmakers consider sales tax exemption for college and university textbooks.

“In Maryland, we strongly believe that the education of our students must be a priority,” says Governor Martin O’Malley (D). Maryland’s commitment to student achievement has paid off: the state earned Education Week Magazine’s praise as the nation’s number one public school system in 2009, 2010, 2011, 2012, and 2013. The governor attributes that success in part to the fact that “education funding has been a top priority.”

In addition to strong funding, Maryland schools benefit from sales and use tax exemptions. The number of exemptions is growing, and may grow further still.

Approved Exemption

The governor recently approved HB 0232, which provides “that the sales and use tax does not apply to a sale by specified parent-teacher organizations or other organizations within an elementary or secondary school in the State or within a school system in the State….”

The legislation grants an exemption from sales and use tax for certain sales by:

  • Church or religious organizations;
  • Gift shops at mental hospitals operated by the Department of Health and Mental Hygiene;
  • Certain hospital thrift shops;
  • Certain vending facilities operated by Maryland Vending Program for the Blind; and
  • “An elementary or secondary school in the State or a nonprofit parent-teacher organization or other nonprofit organization within an elementary or secondary school in the State for the sale of magazine subscriptions in a fund-raising campaign,” provided the “net proceeds are used solely for the educational benefit of the school or its students.”

Exemptions Under Consideration

Maryland lawmakers are also considering a number of sales tax exemptions and tax free periods for school supplies and textbooks. These are at various stages of the legislative process:

  • HB 0052: Tax free period for university and college textbooks;
  • HB 0058: Sales tax exemption for university and college textbooks; and
  • HB 0666: Sales tax holiday for school supplies.

How does your company handle sales tax exemptions?

Get Free Tax Rate Tables

Maryland State Rates

photo credit: flickr./com/photos/amanda_munoz via photopin cc


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.