Maryland Issues Guidance on Netflix, Digital Goods Tax

Maryland has released guidance on a tax on digital products such as e-books and Netflix movies which was passed to boost revenue during the pandemic.

The guidanceaddresses sourcing methods for over a dozen different digital products. It offers exemptions for custom-built software, groups like state agencies and parent teacher organizations, among other areas.

The guidance offers several examples of situations where online goods may or may not be subject to the tax, for example if a gift card or hard copy of a game with a digital download code is sold in a brick-and-mortar store.

“The tax base includes ...