Flea Market Sales

Sales made at flea markets are subject to Maryland's 6 percent sales and use tax like most other sales. There are no local sales taxes in Maryland. There is an exemption for casual and isolated sales of less than $1,000 which would cover sales of a seller's own household goods. This exemption does not apply to any sales by a full or part-time dealer. Nor does it apply if any of the property being offered for sale, whether new or used, was purchased or made solely for resale.

30-day permit or permanent license

To collect the sales and use tax you must first obtain a license. You should register as soon as possible. If you don't register now and are later found to be making taxable sales without collecting the tax, you will be liable for back taxes. You can get either a 30-day permit or a permanent license. If you sell at only one or two flea markets a year, a 30-day permit should be sufficient.

If you sell frequently, you can benefit more from a permanent license. Permanent licensees don't have to pay the tax on items they buy to resell if they present a resale certificate. However, there are limitations. Permanent licensees may also deduct a collection fee on the reporting form. The fee is deducted from the taxes collected.

You can get the 30-day permit by calling the Special Events Section at 410-767-1543. For a permanent license, file a Combined Registration Application online.

Taxable foods at flea markets

If there is a charge for admission to a flea market, all sales of food are taxable. If there is no charge for admission, all sales of food are taxable except sales of food intended for consumption off the premises made by a person operating a substantial grocery or market business.

Candy, soft drinks, and alcoholic beverages are not treated as "food" for sales tax purposes and are taxable even when sales of food are not taxable. The tax does not, however, apply to sales of agricultural products such as produce and vegetable plants by a farmer.