A New Law Amends the Definition of Taxable Digital Products in Maryland
Legislation that is set to take effect on July 1, 2022, amends the definition of digital products by including some additional examples of items that do not constitute taxable digital products. Under the 2022 legislation, the following do not constitute digital products:
A product having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities where the purchaser holds a copyright or other intellectual property interest in the product, in whole or in part, if the purchaser uses the product solely for commercial purposes, including advertising or other marketing activities; or
Computer software or software as a service (SaaS) purchased or licensed solely for commercial purposes in an enterprise computer system, including operating programs or application software for the exclusive use of the enterprise software system, that is housed or maintained by the purchaser or on a cloud server, whether hosted by the purchaser, the software vendor, or a third party
For more information, read H.B. 791 here