Has the Maryland General Assembly provided for tax free shopping in 2008?

No. No legislation was introduced in the 2007 regular session to establish a tax-free shopping period in 2008. However, during the 2007 special session, legislation was enacted to provide two tax-free periods beginning in 2010 and 2011.

Beginning in calendar year 2010, there will be a one week tax-free period for back-to-school shopping in Maryland during which the sales and use tax does not apply to the sale of any items of clothing or footwear, excluding accessory items, if the taxable price of the item of clothing or footwear is $100 or less. This tax-free period will occur the week of August 8, 2010, through August 14, 2010.

Beginning in calendar year 2011, there will be a tax-free three-day weekend during which the sales and use tax will not apply to the sale of certain Energy Star products or solar water heaters. This tax-free weekend will occur the weekend of February 19, 2011, through February 21, 2011.

For more details, see our Sales and Use Tax Alert on Tax-Free Periods