It seems to me that MD's sales tax on services is an attempt to grab
some income from Virginia based consultants.
A Va. consultant would go into MD, perform services, and only pay tax on
his income to Virginia. By imposing a 'sales' tax, then MD can get a
cut of the action that takes place on their soil.
I do some consulting work here in NC, and investigated reselling
equipment at a profit. NC requires quite a bit of detail in the monthly
reports in addition to a reseller's license. I would have to file this
report monthly even if I sell just one item or less. My solution is to
simply pay the sales tax at the time that I purchase the equipment, then
pass on the exact cost to the client. This eliminates negotiating with
vendors for a tax exempt status, and making sure that I get it with
every purchase (an additional headache), and all the record keeping and
reporting as well. I don't think this violates any laws here... would
it in DC and Maryland?
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