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Amazon to Collect Maryland Sales Tax on October 1, 2014

  • Sep 22, 2014 | Gail Cole

 Et tu, Maryland?

Amazon will begin collecting Maryland sales tax on October 1, 2014. This is not a surprise. Since the company announced in October 2013 its plans to build a one million square-foot fulfillment center in Baltimore, sales tax collection became a “when,” not an “if.” Any business with a physical presence in a state (such as a giant warehouse) is required to collect and remit that state’s sales tax.

According to Mike Roth, Amazon’s vice president of North America operations, the fulfillment center will mean full-time jobs for more than 1,000 Maryland residents. Governor Martin O’Malley has said he is “thrilled that Amazon is joining our community of businesses that surround the Port of Baltimore.” His sentiment is echoed by Baltimore Mayor Stephanie Rawlings-Blake and the Baltimore Development Corporation.

Fulfillment By Amazon beware

The Baltimore fulfillment center may trigger a sales tax obligation for other businesses through Amazon’s Fulfillment by Amazon (FBA) program. FBA sellers store their products in Amazon fulfillment centers and Amazon employees “pick, pack, ship, and provide customer service for these products.” When FBA sellers’ products move into the new Baltimore facility, ta da! They have nexus in Maryland.

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photo credit: timfotography.com via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
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.