How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Samuel II Your Own Question
Samuel II
Samuel II, Attorney at Law
Category: Business Law
Satisfied Customers: 27010
Experience:  20 years of experience practicing law with diversified background.
Type Your Business Law Question Here...
Samuel II is online now
A new question is answered every 9 seconds

In Maryland, if a vehicle is shipped into Maryland from

Customer Question

Hello,In Maryland, if a vehicle is shipped into Maryland from another state for parts & service and then shipped back to a customer in another state, do they need to pay the 6% MD taxes on the parts?
Submitted: 6 months ago.
Category: Business Law
Expert:  Samuel II replied 6 months ago.

This is Samuel. I will discuss this and provide you information in this regard. Thank you for your patience while I review your question.

Expert:  Samuel II replied 6 months ago.

Oh sure. MD is not going to lose on it's share of the taxes. Businesses have to pay a 6% on every purchase made. So yes, it is up to the consumer to pay that tax. And whether the car goes back to another state or not, the business transaction occurred in Maryland.

Expert:  Samuel II replied 6 months ago.

Additionally, every time a MD resident purchases taxable tangible goods from businesses outside of Maryland, whether in person, over the phone, or on the Internet, the purchase is subject to Maryland's 6 percent use tax or 9 percent alcoholic beverage tax if you use the merchandise in Maryland.

According to the Government, Maryland's use tax protects Maryland businesses from unfair competition. Local businesses would be at a competitive disadvantage if consumers were entitled to a 6 or 9 percent discount on items purchased from out of state businesses. But the bot***** *****ne is MD wants it money.

Customer: replied 6 months ago.
Sam,Thank you for responding. The client is asking because if we ship him the parts, as he lives out of state, he does not have to pay the MD 6% tax. He says if he ships us his vehicle, we install the parts, and ship the vehicle back to him (he will never be here, or use the car/parts here in MD) that he does not have to pay the MD 6% tax?
Expert:  Samuel II replied 6 months ago.

I suggest, you are liable and accountable for the sales tax. If you want to waive/eat the tax as a customer relations that's up to you.

Expert:  Samuel II replied 6 months ago.

Here's a link to the MD Comptroller's website on the issue if you want to share it with your customer.

Expert:  Samuel II replied 6 months ago.

If I've missed anything that you needed or you have other questions, please let me know here. Otherwise, a Positive rating ensures I get credit for my time. Thank you.