Bulk Sales and Use Tax Returns

The Combined Registration Application you filed with the Maryland State Comptroller's Office indicates that you have purchased a business located within the state of Maryland. Under Maryland law, a 6% sales and use tax is applicable to the price of tangible personal property included in the purchase of a business, unless specific exemptions exist. The tax applies to charges for:

• Furniture and fixtures,
• Computer software,
• Business records,
• Customer lists, and
• Non-capitalized goods and supplies.

Effective May 1, 1992, the tax also applies to leases of retail food preparation equipment and sales of property consumed in preparing food for sale at restaurants, grocery stores, delicatessens and retail bakeries.

The tax does not apply to any portion of the purchase price attributable to real property or intangibles such as goodwill. In addition, the tax does not apply to the price of inventory held solely for resale, titled motor vehicles, and, except for retail food vendors, capitalized production equipment used to manufacture products for sale.

Enter the applicable tax on Line 3 of the enclosed supplemental sales and use tax return. This return is due by the 20th day of the month following the month in which the sale took place. If this tax was collected from you at the time of purchase, please send a photocopy of the settlement sheet or other verification with the return. Failure to file this return with taxes due on or before the due date will result in the loss of discount and the application of penalty and interest.

If you are registered to collect sales and use tax, please do not use the enclosed return to remit taxes collected on your sales. Regular sales and use tax returns will be mailed to you for that purpose.

For additional information regarding bulk sales, and assistance in preparing the return, please call 410-767-1579.

For additional information:

Comptroller of the Treasury Revenue Administration Division 301 West Preston Street Baltimore, Maryland 21201-2383

call Taxpayer Service at 410-767-1300 (Baltimore area) 1-800-492-1751 (from elsewhere in Maryland) from 8:00 a.m. to 5:00 p.m. eastern time. E-Mail:taxhelp@comp.state.md.us

For the deaf or hard-of-hearing:

TTY users call via Maryland Relay at 711 in Maryland or 1-800-735-2258 from anywhere TTY: 410-767-1967 (Baltimore Metro Area)

If you need a reasonable accommodation for a disability, please contact us before you visit.

If you need the information in this brochure in an alternate format, contact: Office of Communications 410-260-7995 (voice); 410-260-7157 (TTY)