Next week, what will Maryland have in common with Alaska, Delaware, Montana, New Hampshire and Oregon? No state sales tax. But remember, it’ll just be for a week here. The other five states offer that perk all year long.
It’s all true. Maryland, the not-so Free State, which in 2008 jacked up its retail sales tax from 5 cents on the dollar to 6 cents, is laying off that key on the cash register from this Sunday, Aug. 10, through Saturday, Aug. 16. And although it falls on the calendar in the nick of time for folks to start their back-to-school shopping, almost all school supplies themselves don’t qualify for the break during Shop Maryland Tax-Free Week.
Comptroller Brooke Lierman (D), the state’s top elected bean counter, is fully supportive of the tax-free week. That’s because it benefits businesses in Southern Maryland and across our state while saving consumers some money at the same time. During this period, selected clothing and footwear items are exempt from Maryland’s 6% sales tax.
Here’s how it works: Qualifying articles of clothing and footwear $100 or less are exempt from the sales tax, no matter how many items are purchased at a single time. For example, a shopper could buy two qualifying items for even $95 each and would still receive the waived sales tax despite the total amount exceeding $100.
Also, the first $40 of the price of a backpack or book bag is eligible.
And if a business is selling an item that doesn’t qualify for the tax exemption, that retailer is still free to offer the items without the sales tax as long as it pays the tax owed to the state for the customer. The onus is on the business in that case, not the consumer.
Also, if an item is purchased during the tax-free week but is returned after the week finishes, no additional tax would be due if the item were exchanged for the same item in a different size or color. If the item were returned for store credit on the purchase of a different item, the customer would pay the full sales tax for the new item.
But rainchecks for items not in stock would be subject to the regular 6% sales tax later.
Lierman’s office will promote the week on social media pages like Facebook, Twitter and Instagram. Folks can follow by using #ShopMDTaxFree.
The state might lose a bit of money from the tax collections next week, but the stimulus to buy should be a win for businesses and consumers alike.
“Shop Maryland Tax-Free Week is an important opportunity for Marylanders, particularly families, to save some money while doing their back-to-school shopping,” Lierman said. “The cost of new clothes and backpacks for families of any size can add up quickly.”
