Expanded Sales and Use Tax
As of July 1, 2025, a tax rate of 3% is applied to sales of data and information technology services and software publishing services , as outlined in the Budget Reconciliation and Financing Act of 2025. The law also increased the sales and use tax rate on cannabis from 9% to 12% effective July 1.
The proposed regulatory changes apply to the following sections of COMAR:
03.06.01.01 Personal, Professional, or Insurance Services.
03.06.01.03 Repairs of Tangible Personal Property, Digital Codes, and Digital Products.
03.06.01.05 Food for Human Consumption.
03.06.01.07 Sales Where it is Impractical to Establish the Amount of Property to be Resold.
03.06.01.08 “Taxable Price” Defined.
03.06.01.11 Printing.
03.06.01.21 Time of Collection.
03.06.01.25. Transactions in Interstate Commerce.
03.06.01.28 Lease of Tangible Personal Property.
03.06.01.47 Cannabis.
03.06.01.48 (New) Data or Information Technology Services and Software Publishing Services.
03.06.01.49 (New) Multiple Points of Use Certificates.
03.06.01.50 (New) Applicable Rate for Data or Information Technology Services and Software Publishing Services.
03.06.03.02 Records.
The regulatory changes follow the emergency regulations previously submitted earlier this year, with minor corrections. The proposal is aligned with the information in Technical Bulletin #56.
The Comptroller’s Offices proposed regulations will be published in the Maryland Register on December 26, 2025, and comments will be accepted through January 25, 2026. Comments may be emailed to CompMDLegal@MarylandTaxes.gov.
Digital Advertising Gross Revenue Tax (DAGR)
Regulation amendments for “COMAR 03.12.01.01, Digital Advertising Tax, Definitions” clarify that, to be subject to the digital advertising gross revenues tax, digital advertising services must be both programmatic and conveyed visually. The amendments align with information previously published in Technical Bulletin 59 by the agency earlier this year.
DAGR, which became law in 2021, requires individuals or companies with global annual gross revenues of $100 million or greater to pay a tax on the portion of those revenues derived from digital advertising services in the state of Maryland.??
Any taxpayer who may have previously reported tax on digital advertising services that are not both programmatic and conveyed visually has three years from the due date to file an amended return.
The State of Maryland has collected more than $418 million since DAGR collection began in 2022, through October 2025. Maryland law (Tax-General Article § 2-4A-02 of the Maryland Code) outlines that after deducting the costs of administering the tax, the remainder of DAGR revenues are distributed to the Blueprint for Maryland's Future Fund.
The proposed regulation changes will appear in the Maryland Record on December 26, 2025. The notice and comment period ends January 26, 2026. Comments may be sent to CompMDLegal@MarylandTaxes.gov.
Public Information Act
The Comptroller’s Office is also making updates to its regulations regarding Maryland's Public Information Act (PIA).
The proposals would limit the disclosure of records containing sociological information like an individual’s social security numbers, personal street address, personal phone number, personal e-mail address, and date of birth. Several other state agencies, including the Department of Labor, Department of Transportation, and State Board of Education, already have such measures in place. The proposed changes also include increasing fees for copies, photographs, printouts, and redaction to adjust for inflation and reflect the cost of producing those documents.
The cost for copies, printouts, and photographs will increase to $0.50 per page from $0.25 per page, and the rate for redacted pages will increase to $1.00 per page from $0.50 per page. Requestors will be able to request waivers if the inquiry is in the public interest or if they face hardship.
The regulations will be published December 12, 2025, in the Maryland Register.
The proposed changes will undergo a 30-day review, with comments accepted through January 12, 2026. Comments may be emailed to CompMDLegal@MarylandTaxes.gov
All requests for records maintained by the Comptroller of Maryland pursuant to the Maryland PIA may be submitted to PIA@marylandtaxes.gov.?For more information about PIA requests with the Comptroller of Maryland, click here.
All materials related to the tax changes for 2025 can be found at www.MarylandComptroller.gov/2025TaxUpdates.
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