Comptroller of Maryland. Serving the People. Peter Franchot, Comptroller
Spotlight on Maryland

Do nonprofit organizations have to collect tax?

Yes. Nonprofit organizations must collect tax on merchandise they sell, even if the goods are donated to them. Private individuals must also collect tax even if they plan to donate the proceeds to a nonprofit organization. Private individuals are not eligible for a sales and use tax exemption certificate. Sales by religious organizations and sales of food by volunteer fire companies and veterans' organizations are exempt.