Maryland Statutes
Subtitle 2 - Exemptions
Section 11-219 - Services

(a)    The sales and use tax does not apply to a personal, professional, or insurance service that:
        (1)    is not a taxable service; and
        (2)    involves a sale as an inconsequential element for which no separate charge is made.
    (b)    The sales and use tax does not apply to a sale of custom computer software, regardless of the method transferred or accessed, or a service relating to custom computer software that:
        (1)    would otherwise be taxable under this title;
        (2)    is to be used by a specific person;
        (3)    (i)    is created for that person; or
            (ii)    contains standard or proprietary routines requiring significant creative input to customize, configure, or modify the procedures and programs that are necessary to perform the functions required for the software to operate as intended; and
        (4)    do not constitute a program, procedure, or documentation that is mass produced and sold to:
            (i)    the general public; or
            (ii)    persons engaged in a trade, profession, or industry, except as provided in item (3) of this subsection.
    (c)    The sales and use tax does not apply to the sale of an optional computer software maintenance contract if the buyer does not have a right, as part of the contract, to receive at no additional cost software products that are separately priced and marketed by the vendor.
    (d)    The sales and use tax does not apply to the use of a taxable service obtained by using a prepaid telephone calling arrangement.

Structure Maryland Statutes