Agency: Comptroller of Maryland
Contact Person/Department: Louise D. Collins
Tel. No.: (410) 260-7292
Fax No.: (410) 974-2968
Public Schools (K-12)
Private Schools (K-12)- Not Exempt
School Groups (e.g., clubs, bands, teams)- Not Exempt
PTAs- Not Exempt
PTOs- Not Exempt
Other parent groups- Not Exempt
Church Groups- Exempt
Youth Sports League- Not Exempt
501 (c)(3) organizations- Exempt if organization is religious in nature
501 (c)(6) organizations- Not Exempt
1a Are local sales and use taxes in your State applied to these groups in the same manner as State sales and use taxes are applied to these groups?
1b Please set forth any comments including a list of groups not listed above whose fundraising activities are exempt from sales and use taxation in your State.
A hospital thrift shop that sells ONLY donated items, is operated by volunteer staff, and contributes the profit to the hospital it is associated with is not required to collect sales and use tax.
Candies and Confections
Candy/Chocolate coated nuts - Not Exempt
Caramel coated popcorn - Not Exempt
Cookies and Other Baked Goods - Exempt
Cheese Products - Exempt
Meat Products - Exempt
Nuts, popcorn and other snack food - Exempt
Other edible items (please identify)
Magazine subscriptions - Exempt (PTO/PTA only)
Paper products (e.g., calendars, cards stationery, books, gift wrap) - Not Exempt
Decorative tins, baskets, other containers - Not Exempt
Decorative novelties (mugs, ornaments) - Not Exempt
Stationery, books, gift wrap - Not Exempt
Sundry items (please specify item below) - Not Exempt
Clothing and accessories - Not Exempt
Jewelry - Not Exempt
Plant and seeds - Exempt (vegetables)/ Not Exempt (flowers)
Other hard good items - Not Exempt
2a Are local sales and use taxes in your State applied to these products in the same manner as State sales and use taxes are applied to these products?
2b Please set forth any comments including a list of products not listed above that are exempt from sales and use taxation for fundraising purposes in your State.
Limits on number of fundraiser events per year
Limits on duration of fundraisers
Limits on dollar amount of each item
Limits on total amounts raised per year
There are no limitations.
The group is required to complete a Combined Registration Application and submit it with a copy of their Articles of Incorporation, its favorable 501 (c)(3) Determination Letter, and ByLaws.
(See Attachment I) (Section 11-204, Tax General Article Annotated Code of Maryland.)
Sales of groceries (i.e. pizza kits, sausage and cheese variety packs, Girl Scout cookies) are generally not subject to tax. The tax does not apply to sales of food by a non-profit vendor who provides no facilities for consumption of food sold. (See Attachment II). section 11-206, Tax-General Article, Annotated Code of Maryland.
The fundraising group (e.g. PTAs, booster clubs, community associations).
Price paid by consumer to fundraising group.
Non-profit organizations (other than those of a religious nature) are required to apply for a Sales and use tax license when engaging in fundraising activities whereby tangible personal property is being sold. The license number is used to make tax free purchases for resale. The license can be obtained by completion of our Combined Registration Application or by applying for a 30 day permit through our Special Events Section. Neither registration requires a fee.
Churches and other organizations of a religious nature may use the exemption certificate number on a resale certificate and need not apply for a license or permit.
Last Updated: September 2005