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S.A.L.T. Select Developments: Maryland

Baker Donelson's S.A.L.T. Select Developments will identify important state and local tax developments from Maryland.

State and local taxes impact almost every taxpayer. S.A.L.T developments in any one jurisdiction can be frequent and sometimes confusing. Where multiple jurisdictions are involved, staying current with state and local tax developments can be overwhelming for any taxpayer.

To assist you with staying current on a periodic basis, Baker Donelson's S.A.L.T. Select Developments will identify one or more recent state and local tax developments from Maryland.

March 2024

Employer Withholding Guide Updated for 2024: The Comptroller of Maryland (Comptroller) recently issued the Employer Withholding Guide as revised December 2023. The Comptroller in the Guide states that the Guide is effective January 2024 and includes local income tax rates that were current at the time the Guide was developed but cautioned that the Maryland Legislature may change these tax rates when in session. The Comptroller states that changes can be found at the Comptroller's website at Additionally, the Comptroller states that the instructions in this Guide include percentage formulas to determine the amount of income tax to be withheld from employees' wages. Further, the Comptroller states that additional assistance can be found at the contact information set forth in this Guide. More information can be found here.

February 2024

Legal Division Now Accepting Petitions for PLRs: On January 9, 2024, the Comptroller of Maryland (Comptroller) issued a News Release stating that Private Letter Ruling (PLR) petitions are being accepted. As referenced in this Release, as well as in the Comptroller's Technical Bulletin No. 44, PLRs are an important tool for taxpayers seeking certainty for tax treatment when they have a certain fact situation that is not addressed in other guidance. Further, the Comptroller states in this Release that because a PLR is binding on the Comptroller, the taxpayer has financial certainty regarding the transaction that is subject to the PLR, which reduces financial risk. The Comptroller states that a PLR is binding on the Comptroller for seven years unless revoked, modified, or voided. More information regarding a PLR, together with and in regard to a request for PLR, can be found here.

January 2024

Guidance as to Private Letter Rulings: Effective December 22, 2023, the Comptroller of Maryland (Comptroller) issued Technical Bulletin No. 44 which is entitled "Private Letter Rulings" and which is intended to provide guidance and procedures for submitting a petition for a private letter ruling. The Comptroller in this Bulletin states that private letter rulings are a formal type of guidance issued by the Comptroller to a specific taxpayer, and they are intended to address complex or novel questions applying to a specific prospective transaction. The Comptroller then states that a petition must comply with the requirements described in this Bulletin, which then sets forth general definitions and other information regarding private letter rulings such as information involving the submission of a petition, the denial and withdrawal of a petition, requests for additional information regarding the petition, among other topics involved with seeking a private letter ruling. The Bulletin also sets forth some Q&As pertaining to a private letter ruling and provides contact information for the Comptroller's Legal Division in the event of questions. More information can be found here.

November 2023

Employers Required to Notify Employees of EITC: The Comptroller of Maryland (Comptroller) recently published a Tax Alert advising employers of the requirement to provide, on or before December 31, 2023, electronic or written notices to employees who may be eligible for federal and Maryland Earned Income Tax Credit (EITC) for 2023. According to this Alert, employees may be entitled to claim EITC on their 2023 federal and Maryland income tax returns if both their federal adjusted gross income and their earned income are less than those figures set forth in the Alert. Employees who meet this income eligibility, according to the Comptroller in this Alert, should be advised to visit the Internal Revenue Service Website as referenced in the Alert, or to contact a tax adviser to see if they meet the other federal criteria. The Comptroller in this Alert also noted that employees who are eligible for the federal EITC are eligible for the Maryland EITC. Further, the Comptroller noted that employers may choose to notify all employees or may choose to notify only those employees with wages less than or equal to the amount shown in the Alert. A sample notification is included with this Alert. More information can be found here.

October 2023

Online Tax Tool Being Launched: On October 6, 2023, the Comptroller of Maryland (Comptroller) published a News Release (Release) announcing that the Comptroller is launching a new online newsletter tool that allows the public – from individual residents and community leaders to members of the media and governmental officials – to sign up for regular agency updates. According to this Release, a key goal of the Comptroller's Office is to build active partnerships with community leaders, small businesses, and Maryland residents, ensuring the agency is accessible to everyone and an increase in transparency around data and the decision-making process. As noted in this Release, when signing up for the online listserv, stakeholders and partners will be able to select topics of interest including taxes, unclaimed property, and legislation/regulations, among many other topics. The Release encourages residents to get involved with the agency by signing up for this new online tool. For those currently receiving updates from the Comptroller's Office, the Comptroller strongly urged they sign up for the newsletter before October 27, after which all notifications and updates from the agency will be transmitted through the new online engagement portal. More information can be found here.

September 2023

Business Information for Adult-Use Cannabis: The Comptroller of Maryland (Comptroller) has published information regarding the recently enacted Cannabis Reform Act signed by Governor Moore on May 3, 2023. According to that published information, sales of adult-use cannabis are permitted beginning July 1, 2023; and, in that regard, the published information states that Maryland will impose a nine percent sales and use tax on retail sales of adult-use cannabis and cannabis products, which reportedly, is the same rate that applies to the sale of alcoholic beverages. As part of that published information, the Comptroller also published a Tax Alert dated July 28, 2023, that sets forth questions and answers for cannabis businesses addressing a wide variety of questions pertinent to such business. More information can be found here.

August 2023

Executive Organization Chart: On August 9, 2023, the Comptroller of Maryland (Comptroller) published an executive organization chart for the Comptroller's Office. This chart provides insights into the leadership structure within the Comptroller's Office, including information regarding the lines of management for the Chief of Staff, the Chief of Deputy Comptroller for Revenue Operations, and other information regarding leadership teams within the Comptroller's Office. More information regarding these and other enactments can be found here.

July 2023

Sales and Use Facts 2023-2024: On June 15, 2023, the Comptroller of Maryland (Comptroller) published a Tax Alert addressing several sales and use tax enactments during the 2023 Legislative Session. According to the Alert, those enactments included a new law effective July 1, 2023, providing that adult-use cannabis can be sold from a licensed dispensary or on-site consumption establishment to a consumer who is at least 21 years old. This new enactment imposes a sales and use tax rate of 9 percent on the retail sale of adult-use cannabis beginning July 1, 2023, and sets forth other licensing and regulatory provisions. More information regarding the cannabis reform legislation can be found in that Alert. Another enactment discussed in this Alert is the application of the sales and use tax to home amenity rentals beginning July 1, 2024. According to this Alert, the amenity rentals include the temporary use of residential property, excluding bedrooms, for not more than 15 consecutive hours; and the Comptroller noted that common home amenities available for rental include, but are not limited to, residential swimming pools, saunas, and barbeque areas. This new enactment also allows counties and municipalities to impose local taxes on home amenity rentals. Separately, the Alert notes that the annual interest rate for the calendar year 2023 is 9 percent; and that the Comptroller will publish the 2024 interest rates later this year at More information regarding these and other enactments can be found here.

June 2023

New Advisory Councils and Work Groups: On May 23, 2023, the Comptroller of Maryland (Comptroller) published a News Release announcing that 11 new Advisory Councils and Work Groups (Groups) will be convened to provide opportunities for members of the public to help advise the agency on its strategic direction. According to this News Release, the application process has been opened for those who would like to serve on these Groups. As referenced in this Release, one of the key recommendations of the Transition Report was to strengthen the links between the Comptroller and the community by creating Groups to hear from residents, make recommendations, and ask questions of the administration. As a result, the Comptroller will establish 11 new Advisory Councils and Work Groups, including a Business Advisory Council, a Climate Advisory Council, an Information Technology Work Group, and a Tax Practice Work Group, among others as listed in the Release. According to this Release, the deadline to apply is June 23, 2023. More information regarding the application process is set forth in the Release and can be found here.

May 2023

Publication of Digital Advertising Tax Return: On May 10, 2023, the Comptroller of Maryland (Comptroller) published an updated Publication addressing the ongoing dispute as to the enforceability of the state's Digital Advertising Gross Revenues Tax. In that regard, the Comptroller noted in the Publication that the Supreme Court of Maryland ruled on May 9, 2023, in favor of the Comptroller in the case of Comptroller of Maryland vs. Comcast of California, Maryland, Pennsylvania, Virginia, West Virginia, LLC et. al., holding that administrative remedies had not been exhausted before challenging the tax in court, and thus ordered the lower court to dismiss the action. Further, the Comptroller stated in this updated Publication that any taxpayer who delayed filing of the 2022 digital ad tax return pending the outcome of the foregoing litigation, should file their return and remit their tax payment as required by statute. This Publication, originally issued February 27, 2023, then sets forth the annual filing and payment requirements for this tax. More information can be found here.

April 2023

Taxpayer Advocate Division: On April 11, 2023, the Comptroller of Maryland (Comptroller) published a News Release reviewing certain legislative accomplishments during the 2023 Legislative Session, just one of which being the passage of 2023 HB707/SB660 which establishes a Taxpayer Advocate Division within the Office of the Comptroller. According to the Release, this legislative initiative will be signed into law at a later date; and when enacted, will provide at least six staff members to assist Marylanders with timely resolutions to tax issues and work to identify and address systemic challenges to efficient tax processing and problem resolution for Marylanders. According to the Bills, the legislation when signed into law will be effective July 1, 2023. More information can be found here.

March 2023

Interest Rate for Late 2022 Individual Income Taxes: The Comptroller of Maryland (Comptroller) has published an announcement stating that interest is due at the rate of 9.0 percent annually or 0.75 percent per month for any month or part of a month that a tax is paid after the original due date of the 2022 Individual Tax Return but before January 1, 2024. The announcement provided contact information with respect to calculating interest for tax paid on or after January 1, 2024, with respect to the 2022 return. More information can be found here.

February 2023

New Local Tax Rate Changes for 2023: The Comptroller of Maryland (Comptroller) recently published a listing of local income tax rates for Maryland's 23 counties and Baltimore City. According to the Comptroller's publication, six counties (Allegany, and Anne Arundel, Cecil, Frederick, St Mary and Washington) have decreased their local rate for calendar year 2023. The Comptroller attached a complete list of current city and local counties' tax rates with footnote information for certain counties. More information can be found here.

January 2023

2023 Employer Withholding Guide: The Comptroller of Maryland (Comptroller) recently published the Withholding Guide, effective January 2023 (updated December 2022), which includes local income tax rates. The Comptroller stated in this Guide that these rates were current at the time the Guide was developed. The Comptroller also cautioned that the Maryland Legislature might change such tax rates when in session and suggested checking the Comptroller's website at during such time in session for any changes. More information can be found here.

October 2022

Shop Maryland and Save for the Holidays: On October 3, 2022, the Comptroller of Maryland (Comptroller) launched the annual "Shop Maryland and Save for the Holidays" campaign. The Comptroller noted that small businesses have begun to recover from the pandemic but now are facing inflationary costs and an array of other challenges that make it especially important to support local retailers. Further, he indicated this is a great opportunity for consumers to save during challenging financial times and a much needed boost for mom-and-pop businesses that are the backbone of Maryland's economy. The Comptroller went on to provide other insights into the campaign and benefits of shopping in Maryland. More information can be found here.

September 2022

Letter of Intent Required for Privately Designed and Printed Tax Forms: In Administrative Release No. 26, Revised September 2022, the Comptroller of Maryland (Comptroller) set forth the procedures for computer-printed substitute forms to be used in place of the income tax forms produced and distributed by the Comptroller. Pursuant to this Release, the Comptroller will accept only those substitute forms that conform to the corresponding official forms, comply fully with the requirements set forth in this Release, and do not have an adverse impact on tax processing. Further, the Release states that while it deals primarily with paper documents, it also includes other processing and filing mediums, such as optical character recognition, electronic filing, etc. The Release then sets forth numerous requirements for substitute forms to be used for Maryland income tax purposes. One such requirement is that software vendors and tax return preparers who want to file substitute privately designed and printed tax forms and/or computer-generated and computer-prepared tax forms, or create such forms for sale, must develop such substitutes using the guidelines within the Release. These substitutes, unless excepted by this Release, must be approved by the Comptroller's Revenue Administration Division, and all entities intending to file substitute forms must submit a signed Income Tax Letter of Intent by October 31, 2022. More information can be found here.

August 2022

Sales and Use Tax Exemption Certificate Renewal Online Application: The Comptroller of Maryland (Comptroller) has published an announcement regarding the process by which an exempt organization for sales and use tax purposes can renew its exempt status using the online application. This announcement states that the application must be completed by an authorized officer, and that an authorized officer is a person formally empowered by the business entity to conduct business on its behalf, or a person who can act in an official capacity on behalf of the organization, such as an executive director, CEO, CFO, COO, president, secretary, treasurer, deacon, elder, pastor, or any other officer specified by the rules of operation, Articles of Incorporation, or Bylaws. Further, in order to complete the renewal process, the organization must have the following information: (i) the FEIN for the organization; and (ii) instructions for an exemption certificate renewal letter mailed to the organization. The announcement says that the organization should print a copy of each page during the online renewal application to keep for its records. Upon successful renewal, the announcement states that the organization will receive a new Maryland Sales and Use Tax Exemption Certificate with an expiration date of five years from the current expiration (September 30, 2027) and that new Certificates will be mailed in September 2022. The announcement references that if additional information is required to process the application, the Comptroller's office will contact the organization via written correspondence. The announcement also provides a contact number in the event of questions regarding the renewal application. More information can be found here.

June 2022

Sales and Use Tax Definition of "Digital Product" Altered: On May 29, 2022, Maryland House Bill 791 became law in Maryland without the signature of Governor Hogan, altering the definition of "digital product" for sales and use tax purposes to exclude certain additional products from sales/use taxation. Specifically, this new law, which is effective July 1, 2022, excludes from taxation: (i) a product having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities where the purchaser holds a copyright or other intellectual property interest in the product, if the purchaser uses the product solely for commercial purposes, including advertising or other marketing activities; and (ii) computer software or software-as-a-service purchased or licensed solely for commercial purposes in an enterprise computer system, including operating programs or application software for the exclusive use of the enterprise software system, that is housed or maintained by the purchaser or on a cloud server, whether hosted by the purchaser, the software vendor, or a third party. More information can be found here.

May 2022

Personal Property Tax Exemption Increased for Certain Business Property: On May 13, 2022, Governor Hogan signed into law HB 268, which increases from $10,000 to $20,000 the amount of personal property that can be exempt from the personal property tax if owned by an individual and used in connection with a business, occupation, or profession located in the individual's principal residence, and the sum total of the personal property, with some exclusions, had a total original cost of less than $20,000. This increase applies to all taxable years beginning after June 30, 2022. More information can be found here.

April 2022

Renewal of Sales and Use Tax Exemption Certificate: The Comptroller of Maryland (Comptroller) has published an announcement advising if an organization is renewing its sales and use tax exemption certificate that expires September 30, 2022, then that organization must apply for the renewal of the certificate. The Comptroller's announcement provided that the Sales and Use Tax Application is for first-time sales and use tax exemption certificate filers, or organizations holding a card with an expiration date of September 30, 2017, or earlier; and the organization must operate out of a physical business location in Maryland, Delaware, Pennsylvania, Virginia, Washington, D.C. or West Virginia. The Comptroller's announcement further stated that Maryland law provides that the organization must be in Maryland or one of these adjacent jurisdictions to qualify; and that organizations in other states do not qualify. More information regarding the exemption renewal process can be found here.

March 2022

First and Second Quarter Individual Income Tax Estimates Extended to July 15, 2022: The Comptroller of Maryland (Comptroller) recently issued Tax Alert 02-23-2022A which superseded the previous Tax Alert issued on January 19, 2022 (see our February 15, 2022 publication) so as to address the first and second quarterly due dates for the estimated payments for the tax year 2022 individual income tax obligations. The Tax Alert issued January 19, 2022 addressed various extensions relative to the 2021 year, but did not apply to the 2022 year. This Tax Alert 02-23-2022A supersedes the previous Alert so as to not only restate the extensions applicable to the 2021 year, but also provide that effective February 23, 2022 the due dates for the first and second quarter individual income tax estimated payments for the tax year 2022 have been extended to July 15, 2022. This extension of the first and second quarterly estimated declarations and payments is further addressed by the Comptroller in Tax Alert 02-23-2022B, which provides the extension applies to both resident and nonresident individuals with a tax year 2022 estimated tax payment requirement. This Alert 02-23-2022B also provides for individuals who are on a fiscal year basis, the due date for any tax year 2022 estimated tax declarations and payments would be due on or before July 15, 2022, is now extended to July 15, 2022. More information can be found here and here.

February 2022

COVID-19 Extended Deadline for Certain Individual Income Tax Filings and Payments: The Comptroller of Maryland (Comptroller) recently issued a Tax Alert declaring a new state of emergency relating to the ongoing COVID-19 pandemic; and, as a result of the continued hardship and economic impact on individuals caused by that pandemic, the Comptroller has extended the due date for certain Maryland individual income tax returns and accompanying final payments. Pursuant to this Tax Alert, the extension is for individual income tax filings and final payments due with those returns for the tax year 2021; and such tax year 2021 returns otherwise due between January 24, 2022 and April 18, 2022 are now due on or before July 15, 2022. According to the Tax Alert, this extension applies both to resident and nonresident individuals with a tax year 2021 Maryland filing requirement. Additionally, the Tax Alert states the due date for individual returns from farmers and fisherman, originally due March 1, 2022, are also extended to July 15, 2022. The Comptroller also states in the Tax Alert there is reasonable cause to wave interest and penalties for late payment if the income tax due with respect to personal income tax returns for the tax year 2021 that otherwise would have been due between January 24, 2022 and April 18, 2022, inclusive, is paid by July 15, 2022. This extension according to the Tax Alert is automatic, and no filing or request is required to take advantage of the extended deadline. Additionally, the deadline to request an extension to file the 2021 individual income taxes has, according to the Tax Alert, been extended to July 15, 2021; and, upon approval of an extension request, the Comptroller will allow an individual taxpayer to file returns by October 17, 2022 – but extension payments due with the 2021 extension request are due by July 15, 2022. This extension of time to file a return and make payment of tax only applies to certain individual taxpayers; and the due dates for corporate, pass through entity, fiduciary income tax returns and payments are not affected. More information can be found here.

January 2022

Notification to Employees of Potential EITC Eligibility: The Comptroller of Maryland has issued Tax Alert 21-10 which references Maryland law requiring employers to provide, on or before December 31, 2021, electronic or written notice to employees who may be eligible for the federal and Maryland Earned Income Tax Credit (EITC). The Tax Alert states that employees may be entitled to claim the EITC on their 2021 federal and Maryland resident income tax returns if both their federal adjusted gross income and their earned income is less than those figures set forth in the Tax Alert. Further, employees who meet this income eligibility should be advised to go to the Internal Revenue Service website or contact their tax advisor to determine if they meet the other federal criteria. In addition, employees who are eligible for the federal credit are eligible for the Maryland credit. With respect to the Maryland EITC, this credit is for taxpayers who have income and have worked, that such credit reduces the amount of Maryland tax that the employee may owe, and that such Maryland credit is up to one-half of the federal credit. Maryland eligibility conditions are also addressed. More information can be found here.

October 2021

Whistleblower Reward Program Summary and FAQs: On September 30, 2021, the Comptroller of Maryland issued a Tax Alert summarizing the Whistleblower Reward Program operated by the Comptroller and provided several FAQs regarding that Program. This Alert addresses eligibility requirements for a whistleblower, discusses the phrase "original information," reviews what is a "covered enforcement action," and explains the method for a whistleblower to participate in the Program, among other information pertinent to such participation in and the administration of the Program. Further, the Alert provided several frequently asked questions regarding the Program. More information can be found here.

September 2021

Statewide Tax Relief to Businesses: On September 3, 2021, the Comptroller of Maryland issued a News Release that extended tax relief to businesses impacted by severe storms in various parts of the identified counties, as well as other parts of Maryland. According to the Release, the extended due dates for a variety of tax and motor fuel payments for businesses and emergency responders “now applies statewide.” Also, according to the Release, the Comptroller’s Office is providing a waiver of interest and penalties for business taxpayers who are unable to meet the September filing deadlines for sales and use taxes, admission, and amusement taxes, withholding taxes, and certain alcohol taxes, with the Release setting forth the extended date by which the report and payment of such taxes are due. More information can be found here.

August 2021

Collection Activities Resumed August 16, 2021: On August 3, 2021, the Comptroller of Maryland issued a news release stating that collection activities resumed beginning August 16, 2021. Collection and licensing activities have been on hold as the result of a previous Executive Order issued by Governor Hogan, as well as a subsequent extension of that Executive Order through August 15, 2021. With the resumption of these collection activities, enforcement activities will include, but not be limited to, offsets of state and federal income tax refunds, license holds, audit and collection activities, including the issuing of liens, offsets of state vendor payments, among others. The release stated that some taxpayers may have received notices from the Comptroller's Office prior to August 16, but these notices will be limited to circumstances where legal action is required earlier than August 16 to protect the interest of the State of Maryland. The Comptroller's Office will continue to work with individuals and business taxpayers who continue to feel the lingering effects of the pandemic; and that taxpayers with liabilities may contact that office at any time to discuss their situations or to enter into payment arrangements. Contact information is provided in the release. More information can be found here.

First State to Enact Tax Whistleblower Protection Bill: As reported by the National Whistleblower Center on June 2, 2021, the Maryland General Assembly passed House Bill 804 captioned "Taxes – Whistleblower Reward Program and Statute of Limitations for Tax Collections." According to this report, Maryland now becomes the first state, after the District of Columbia, to enact a tax whistleblower protection bill similar to the Whistleblower Program administered by the Internal Revenue Service. This House Bill 804, which was enacted according this report without the Governor's signature, goes into effect on October 1, 2021, and generally provides that whistleblowers who report fraud under the Maryland Tax Code to the Maryland Comptroller that leads to the recovery of money owed by a taxpayer will be entitled to receive a monetary reward amount between 15 percent to 30 percent of what the State recovers. More information can be found here and here.

July 2021

Filing and Payment Extension for PTEs: On June 30, 2021, the Comptroller of Maryland issued a news release extending the filing and payment deadlines for pass-through entities (PTEs) for 2020 income tax returns to September 15, 2021. According to the release, such extension was granted as the result of new laws (see our June 2021 edition of SALT Select, here) requiring extensive changes to tax forms that would be available to PTEs that are accessible on the Comptroller's website. Those forms are expected to be available through software vendors "soon" but the release stated that the Comptroller's Office cannot guarantee the date. The release further stated that taxpayers who file PTE returns and pay any outstanding liabilities by September 15 will not be charged interest or pay a penalty, and no further action is required for PTEs to receive this waiver − "it will be automatically granted." Additionally, the release stated that the waiver is limited to late payment interest and late payment penalty and does not apply to interest or penalty charged on the underpayment of estimated tax. More information can be found here.

Certain Filing Fees No Longer Charged: By Notice dated effective July 1, 2021, the Maryland Secretary of State's Office has advised that the State Department of Assessments and Taxation no longer charges a base filing fee for the cancellation, dissolution, or termination of a registered business. That Notice also states that neither cancellations, dissolutions, or terminations submitted before July 1, 2021, nor resubmission of these filings through a transaction originally completed before July 1, 2021, will be eligible for a refund. More information can be found here.

June 2021

Digital Advertising Tax: As previously reported, Senate Bill 787 as passed in the Maryland General Assembly makes various amendments to the previously enacted tax on digital advertising, including a change in the effective date to all taxable years beginning after December 31, 2021. Because of the passage of Senate Bill 787, and the impact of that legislation upon the tax on digital advertising, the Comptroller of Maryland has revised and republished Business Tax Tip #29 Sales of Digital Products and Digital Codes, with such republication being on June 3, 2021. As stated in that Business Tax Tip #29, such publication contains a non-exhaustive list of digital codes and digital products the sale of which is subject to the sales and use tax if obtained or delivered by electronic means. That publication goes on to state that questions on such Tax Tip #29 can be addressed to the Comptroller’s Office at; and, further, that such Tax Tip will be periodically updated by that Office to provide guidance to taxpayers. More information can be found here.

Pass-Through Entity’s Taxable Income: In addition to addressing the tax on digital advertising, Senate Bill 787 also sought to define a pass-through entity’s taxable income. That definition of taxable income is found Section 2 of Senate Bill 787, and essentially states that such term “means the portion of a pass-through entity’s income under the federal Internal Revenue Code, calculated without regard to any deduction for taxes based on net income that are imposed by any state or political subdivision of a state, that is derived from or reasonably attributable to the trade or business of the pass-through entity in …” Maryland (more information can be found here). Further, and under Section 4 of Senate Bill 787, Section 2 is applicable to all tax years beginning after December 31, 2019 - - in essence, years beginning in 2020. Since Senate Bill 787 only recently became effective, the Maryland Comptroller reportedly has been delayed in updating and finalizing the 2020 pass-through entity tax forms and instructions. Informally, the Comptroller’s Office has advised that the forms will be updated and finalized soon and provided to the various tax preparation software companies, who will then need to implement the forms into their software programs and distribute these updates to taxpayers and accounting firms. Nevertheless, and based on the timing of these updates, it is anticipated that many taxpayers will not be able to file the flow-through entity return by the July 15, 2021 deadline, and will need to utilize an extension of that deadline for filing purposes.

May 2021

Impact of Consolidated Appropriations Act of 2021: On April 7, 2021, the Comptroller of Maryland published Tax Alert 04-07-21 which addresses the impact of the federal Consolidated Appropriations Act of 2021 (CAA) with respect to Maryland taxation. For instance, the Tax Alert noted that the CAA enhanced and expanded certain provisions of prior federal law so as to increase cash flow and reduce the income tax burden on a wide variety of taxpayers, and at the same time overturn the Internal Revenue Service's prior position on several issues involving the deductibility of expense paid with PPP loan proceeds as well as expands certain revisions made by other federal law. The Tax Alert noted some of these changes are retroactive and thus extend to past tax years. An analysis of the fiscal impact of the CAA was performed by the Bureau of Revenue Estimates, which found no provision in the CAA met the automatic decoupling threshold for Maryland tax purposes. As a result, the Tax Alert noted that Maryland conforms to all provisions of the CAA unless legislative action is taken to specifically decouple. The Tax Alert also addresses how the CAA may impact Maryland taxation with respect to a number of issues, including the extension of the medical expense deduction, the depreciation of certain residential rental property over a 30-year period; the temporary business meal deduction expansion; the paycheck protection program and deductibility of business expenses; and the temporary lookback for the earned income tax credit. More information may be found here.

April 2021

Expanded EIC and New Child Tax Credit: On March 11, 2021, the Comptroller of Maryland published a Tax Alert addressing a certain recently enacted Maryland legislation expanding the Maryland earned income credit (EIC) and providing a new Maryland child tax credit. According to this Alert, and prior to the passage of this recent legislation, Maryland conformed to the federal law codified in Internal Revenue Code Section 32(m) by restricting the Maryland EIC to filers with a social security number; however, this recent Maryland legislation decoupled the state from such requirement and expands eligibility to individuals and joint filers who are otherwise eligible but for the Section 32(m) limitation. Further, this recent Maryland legislation created a refundable credit available to certain individuals and joint married filers with one or more dependent, disabled children under the age of 17. This new credit is available in tax years 2020, 2021, and 2022. The Tax Alert also sets forth a few FAQs discussing these credits. More information regarding the expanded Maryland EIC and new child tax credit can be found here.

Digital Advertising Tax Proposed Amendments/Effective Date Change: Senate Bill 787, as recently passed in the Maryland General Assembly, makes various amendments to the previously enacted tax on digital advertising. Included among these amendments is a change in the effective date to be applicable to all taxable years beginning after December 31, 2021, in comparison to the previous date of December 31, 2020. This Senate Bill 787 will be sent to Governor Hogan for consideration. More information can be found here.

March 2021

Updates Reported – On February 15, 2021, Governor Hogan signed into law the Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and Families Act (the "RELIEF" Act), which is intended to relieve some of the adverse economic effects of the pandemic. As part of the RELIEF Act, and as noted in Tax Alert 03-04-21A issued by the Comptroller of Maryland, Maryland citizens who receive a Maryland earned income tax credit in tax year 2019 are eligible to receive an economic impact payment totaling (i) $300 for individual taxpayers, and (ii) $500 for spouses filing joint returns, surviving spouses and heads of households. Also under the RELIEF Act, unemployment benefits and coronavirus relief payments, to the extent included in federal adjusted gross income, may be subtracted from income taxed by Maryland for the 2020 and 2021 tax years. Other benefits are provided under the RELIEF Act, including an enhanced refundable state earned income tax credit as well as an alternative credit against the gross amount of sales and use tax owed by some vendors for each of the three months of March, April, and May 2021. More information regarding these and other benefits can be found here.

Additionally, the Comptroller has issued Tax Alert 03-11-2021, which extends certain filing due dates in order to allow adequate time to develop new tax returns forms that will be compatible with both federal and Maryland legislation providing relief from the pandemic. In that regard, all individual, corporate, pass-through entity and fiduciary income tax returns that would otherwise be due on varying dates between January 1, 2021 and July 15, 2021, inclusive, are now due on or before July 15, 2021. Further, the first and second quarter estimates are also due by July 15. Additionally, sales and use tax returns for March, April, and May 2021 are due July 15. Interest and penalties are waived if the taxes are paid by July 15. Further, and even though the tobacco tax return is due on June 13, 2021, interest and penalties are to be waived if payments are made by July 15. No action is required to request a waiver of interest or penalties, and such waiver will be automatically granted for taxpayers filing returns and making the payments by the date set forth in this Tax Alert. More information can be found here.

Still further, the Comptroller has very recently published Business Tax Tip # 29, entitled "Sales of Digital Products and Digital Code." This 15-page publication is intended to provide guidance with respect to the recently enacted Century Fairness Act that imposes sales and use taxes on the sale of digital products. More information can be found here.

February 2021

Updates Reported – By letter dated January 6, 2021, the Comptroller of Maryland notified the Commissioner of the Internal Revenue Service that Maryland has instituted immediate relief for small businesses in the form of a three-month business tax forbearance for business taxes and estimated monthly payments, and a two-month forbearance for employer withholding payments. (For background information, see here for our January 2021 SALT Select Developments addressing the Maryland Tax Alert 01-06-21 which provides these tax return and payment extensions.) In that letter, the Comptroller also respectfully requested that the Commissioner should provide the same forbearance period for monthly business tax payments owed at the federal level, stating that such extensions will be the most immediate and effective remedy for American businesses and consequently its citizens that can be taken at this juncture. More information can be found here.

On February 12, 2021, the Maryland Senate took action, consistent with actions previously taken by the Maryland House of Delegates, in overriding Governor Hogan's veto of House Bill 732, thereby establishing in Maryland the first tax on digital advertising in the U.S.. It is not a secret that large tech companies like Google and Facebook have been in State Legislators' crosshairs for several years, especially as states, including Maryland, have faced budgetary shortfalls. Maryland estimates an additional $250 million from the tax in the first year alone. While legislators celebrated passage of the bill, there was strong pushback from many in the business community. Trade groups have already planned legal challenges, which legislators anticipated. Other states have considered digital advertising taxes and are likely closely watching how this plays out in Maryland. The Baker Donelson SALT Group is keeping a close eye on all the happenings with digital advertising taxes and will continue to provide updates.

January 2021

Updates Reported – The Maryland Office of the Comptroller has published Tax Alert 01-06-21 announcing new extended deadlines for certain Maryland tax filings and payments in 2021. As stated in this Tax Alert, the state of emergency related to COVID-19 proclaimed by the Governor on March 5, 2020 continues; and, due to the economic impact of that emergency on individuals and businesses, the Comptroller is extending due dates for certain tax types. This Tax Alert provides notice of deadline relief expanded to certain taxes with statutory filing or payment deadlines between January 1, 2021 and April 14, 2021, with the extended date generally being to April 15, 2021. Among the returns and taxes impacted by this Tax Alert are the corporate and pass-through entity income tax filings and payments, as well as other business taxes such as sales and use taxes and withholding taxes, among others. More information can be found here.

December 2020

Updates Reported – By a news release issued November 18, 2020, the Maryland Office of the Comptroller provided a warning to Maryland taxpayers who are collecting unemployment insurance that such collections could potentially result in a loss of the Earned Income Tax Credit (EITC) that certain taxpayers would normally receive. The Comptroller pointed out that unemployment insurance payments are taxable, but are not included in a calculation for EITC, which could result in a forfeiture of the Credits and potentially result in a higher tax liability. The Comptroller warned that this could apply to both federal and Maryland taxes. Although taxpayers can reduce their tax obligation by having taxes withheld from their benefit payments, the Comptroller noted that many elect not to do so and that filers who report a greater annual income due to enhanced unemployment insurance payments may no longer be able to claim the expected EITC. The Comptroller advised Marylanders to prepare now for potential future tax changes so as to "avoid unpleasant surprises" when filing and help mitigate any impact that losing those Credits may have. More information can be found here.

November 2020

Updates Reported – In October 2020, the Maryland Office of the Comptroller issued Tax Alert 20-10 which addresses the requirement of employers to notify employees of potential earned income tax credit eligibility. This Tax Alert reminds employers that Maryland law requires employers to provide an electronic or written notice to an employee who may be eligible for the federal or Maryland-earned income tax credit. The Alert then sets forth the maximum adjusted gross income and earned income as reflected on the 2020 federal and Maryland resident income tax returns for purposes of the credit eligibility. This Alert also provides a sample notification for employers to use, but the Alert also advises that employers may choose to develop their own notice. More information can be found here.

October 2020

Updates Reported – The Maryland Office of the Comptroller issued a News Release on September 23, 2020, announcing the Office's decision to forego until February 1, 2021, a requirement that alcohol distributors report any retailer upon their inability to pay for delivered products within prescribed timelines. As stated in this News Release, the Office's Field Enforcement Division regulates the production and sale of alcoholic beverages in Maryland, and works to ensure an even playing field for retailers by regulating the credit that distributors afford to retailers when selling products. The Release further states that distributors must place retailers who do not pay within a certain period of time on a list maintained by the Division that requires the retailer to pay in cash until credit debts are paid.

The Comptroller was quoted in that Release as stating that "alcohol distributors and retailers have long-lasting, positive relationships and have built up a trust with each other which enables them to work out payment plans, if necessary." The Release further states that this action merely removes the reporting requirement temporarily so that distributors don't have to place retailers on a "naughty list" for circumstances beyond their control. The Release further states that this suspension of the reporting requirements has been in play beginning in March 2020 but was previously issued in two-month increments; whereas this longer freeze provides more certainty for businesses during this difficult and uncertain time. More information can be found here.

September 2020

Coronavirus Tax Payment and Return Filing Responsibilities - Updates Reported (September 30): The Maryland Office of the Comptroller issued a news release on September 17, 2020, reminding taxpayers that collection activities are on hold until after the COVID State of Emergency is lifted. According to the release, the COVID-19 State of Emergency Order issued by Governor Hogan is still in effect, and the Comptroller's Office has suspended collection activities but those activities will resume 30 days after the Order is lifted. Also according to this release, the Office of the Comptroller will mail notifications to certain tax filers of unpaid tax liabilities that were due on July 15, 2020, which was the extended deadline from the traditional April 15 tax due date. These mailings, which will provide the recipients with their account status, are being sent to taxpayers that have not paid the balances of certain taxes, including individual and corporate income, sales and use, and withholding taxes. As stated in the release, recipients of the notices are not required to take any action at this time; however, interest will continue to accrue on any unpaid balance from the time the tax was due, including the period of suspended collection activities, until the liability is paid, as well as a penalty of 10 percent on the total payment due. The release noted that taxpayers who pay the amount due upon receiving the notice can avoid future interest and penalties. The Comptroller was quoted in the release as stating that the Office is "sending these notices to urge those who owe taxes to call us now and work out a payment plan before more interest and penalties are charged. Our team will work with you to find a reasonable plan for your family circumstances or your business, but we must hear from you first." Taxpayers wishing to make payment or request a payment plan are asked to follow the instructions on the notice. More information can be found here.

August 2020

Coronavirus Tax Payment and Return Filing Responsibilities - Updates Reported (August 20): On July 24, 2020, the Maryland Office of the Comptroller issued Tax Alert #07-24 (Alert) which deals with the Maryland income tax. This Alert addresses the Maryland impact of the federal CARES Act on the (i) business interest expense deduction; (ii) limitation of excess business losses for noncorporate taxpayers; (iii) net operating losses; and (iv) qualified improvement property (QIP) bonus depreciation. The introductory provisions of that Alert state that Maryland generally conforms to federal income tax laws except where the Maryland Legislature has enacted decoupling legislation. However, Maryland law also provides that if the revenue impact of an Internal Revenue Code (IRC) amendment for a taxable year that begins in the calendar year in which the amendment is enacted is greater than $5 million, the amendment does not affect the determination of Maryland taxable income for that tax year. In other words, Maryland automatically decouples from those federal changes if the impact is greater than $5 million. The Alert states that, in a report dated June 12, 2020, the Bureau of Revenue Estimates concludes that each of the key provisions referenced above would have an impact greater than $5 million in each year affected, 2018, 2019 and 2020. Nevertheless, the Maryland statute permits decoupling only for purposes of calculating Maryland taxable income for the year in which the amendment was enacted. The Alert goes on to say that Maryland is therefore automatically decoupled from the CARES Act provisions affecting the tax year 2020, but conforms to that Act with respect to the years 2018 and 2019. The Alert goes on to address the impact of Maryland decoupling from the 2020 year with respect to each of the four tax topics referenced earlier. In brief, and subject to the Alert's analysis, the Alert states that (i) as to interest expense, Maryland is decoupled from IRC Section 163 as amended by the CARES Act as it applies to a tax year beginning in 2020; (ii) as to excess business losses, Maryland is decoupled from IRC Section 461(1) as amended by the CARES Act as it applies to the tax year 2020; (iii) as to net operating losses, Maryland is decoupled from IRC Section 172 as amended by the CARES Act as it applies to the 2020 year; and (iv) since Maryland has legislatively decoupled from the federal bonus depreciation except as such bonus is taken by a manufacturer, non-manufacturers may not take bonus depreciation on QIP at the Maryland level even though the property qualifies for federal bonus depreciation. Each of those tax topics are discussed in more detail in the Alert, which can be found here.

June 2020

Coronavirus Tax Payment and Return Filing Responsibilities - Updates Reported (June 25): On June 8, 2020, the Maryland Office of the Comptroller issued a news release stating that the first phase of the agency's new tax processing system, called Compass, will launch on July 6, 2020. According to this news release, the $160 million Compass will upgrade the state's tax processing system and integrate with the data warehouse to create a state-of-the-art program that will expand revenue-generating projects, provide enhanced reporting functionality and make it easier for taxpayers to view and manage their account online. The Comptroller's Office stated that "At a time when most businesses are facing extraordinary challenges, our agency is launching a much improved, easier-to-use reporting and payment system that will help business owners better navigate and manage this end of their accounting." The first phase, according to the news release, is focused on alcohol tax collection and license renewals; and that the Compass integrated tax system will continue to be implemented over the next several years, with corporate taxes launching in the first quarter of 2021, followed by business taxes and individual income taxes in 2022. This new system, according to the release, will improve fraud detection and prevention programs, increase the ability for taxpayers to manage their own accounts via an online portal, maximize compliance with best-practice security standards and maximize audit, collection, and reporting and estimating functionality. More information can be found here.

May 2020

Coronavirus Tax Payment and Return Filing Responsibilities - Further Updates Reported (May 8): On May 4, 2020, the Maryland Office of the Comptroller published Tax Alert 05-04-20 which superseded the Alert issued on May 1, and which addresses certain employer withholding requirements. According to Alert 05-04-20, Maryland employer withholding requirements are not affected by the current shift from working on the employer's premises to teleworking because taxability is determined by the employee's physical presence. This new Alert states that Maryland imposes income tax, and therefore a withholding requirement on employers, for employees domiciled in Maryland, statutory residence of Maryland, and non-residents receiving Maryland-sourced income. The Alert did note that residents of Virginia, Washington, D.C., West Virginia and Pennsylvania who earn wages, salary and certain other income for services performed in Maryland are exempt from the Maryland state income tax, and therefore from withholding, because Maryland has a reciprocal agreement with these states. The Alert also sets forth various FAQs addressing withholding requirements. More information can be found here.

April 2020

Coronavirus Tax Payment and Return Filing Responsibilities - Further Updates Reported (April 16): The Maryland Office of the Comptroller published Tax Alert 04-14-20A on April 14, 2020. This new alert is based on additional guidance issued by the IRS on April 9, and modifies the previous Alert issued on April 1. This most recent Alert expands the tax deadline relief until July 15 to include additional returns, tax payments and claims for refund, and generally applies to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020 and before July 15. More information can be found here.

Coronavirus Tax Payment and Return Filing Responsibilities - Further Updates Reported (April 3): The Comptroller of the State of Maryland has included a Tax Alert dated March 20 on its website for purposes of addressing various questions dealing with the extended deadline for filing 2019 income tax returns and submitting 2019 income tax payments. That extension is to July 15 and Maryland individual, corporate, pass through entity, and fiduciary taxpayers are afforded the same relief at the Maryland level. This Alert also states that while the deadline to file the 2019 income tax return is July 15, interest and penalties shall be assessed on any unpaid tax from July 15 until the date the tax is paid. Further, the Alert states that fiscal year filings with tax years ending January 1 through March 31 are also eligible for the July 15 extension for filing returns and payment. Additionally, the due date for March quarterly estimated payments of 2020 taxes is also extended to July 15. The Alert also discusses the October 15 extension for individuals and the November 15 extension for corporations, which remain unchanged. Other specific extensions are provided for certain other Maryland taxes, such as sales/use taxes, withholding taxes, admissions and amusement taxes, alcohol taxes and tobacco taxes, among others. Further, the Alert states that the Comptroller' Office will cease certain tax collection efforts and such cessation is effective until 30 days after the lifting of the State of Emergency by the Governor of the State. Under this cessation, the Comptroller's Office will not send out lien warning notices, issue liens, attach bank accounts, hold up the renewal of any license, or offset vendor payments for Maryland taxes. In that regard, taxpayers who are currently on a payment plan for delinquent business and/or income taxes and who are unable to make those payments due to the COVID-19 crisis are encouraged by the Alert to contact that Office (contact information in the Alert) to discuss delaying payments. More information can be found here.

March 2020

Coronavirus Tax Payment and Return Filing Responsibilities - Due Date Changes Reported (March 25): On March 18, the Comptroller of the State of Maryland issued a news release stating that the 90-day extension of the April 15 deadline for federal income tax payments would also be allowed to Maryland business and individual income taxpayers, and that no interest or penalty for late payments will be imposed upon 2019 tax payments that are made by July 15, 2020. This announcement does not extend the deadline for filing returns, but rather only addresses an extension of the April 15 deadline for making the income tax payments. The release did note that taxpayers who take advantage of the federal extension to file the return will continue to be automatically granted an extension on their Maryland tax filings. In a separate news release, the Comptroller stated that all of the agency's branch offices throughout Maryland will be closed and will remain closed until further notice, and that taxpayers are urged to file their returns electronically and to submit their questions either via phone at 1-800-MD-TAXES or via email at More information can be found here and here.

Coronavirus Tax Payment and Return Filing Responsibilities - Changes Reported (March 19): On March 11, the Comptroller for the State of Maryland issued a news release announcing that business-related tax filings due during the months of March, April and May will be extended to June 1. This extension applies to businesses filing sales and use tax, withholding tax, and admissions and amusement tax, as well as alcohol, tobacco, and motor fuel excise taxes, tire recycling fees, and bay restoration fee returns. Further, the release states that business taxpayers who file and pay by the extended due date will receive a waiver of interest and penalties. Additionally, the release states that if the Internal Revenue Service (IRS) extends the April 15 filing deadline for corporate and individual income tax returns, Maryland will conform to the decision of the IRS. Find more information here

Bulk Sales Tax Law: The Comptroller of Maryland has recently made the Bulk Sales Act a focus of enforcement. It is an often overlooked tax which applies when an existing business is bought. Based on reliable sources from the Comptroller's Office, this tax has been sporadically enforced in the past, but will now be highly targeted by the Comptroller's Office, in large part due to the significant revenues that could be generated. The law provides that the purchaser of an existing Maryland business must pay a six percent bulk sales and use tax on the price of the tangible personal property, such as furniture and fixtures, computer software, business records, customer lists and non-capitalized goods and supplies, which are part of the business. The law also applies to "Bulk Sales" of a major part of the inventory of an enterprise. In addition to payment of the tax, the law also imposes certain "Notice" requirements on the seller of the business. Click here for the Bulk Sales Act.

February 2020

Corporate Income Tax: The Maryland Senate has introduced legislation that would require combined reporting for all affiliated corporations engaged in a unitary business. The proposed bill would take effect July 1, 2020, and apply to tax year 2021 and beyond. However, it is noteworthy that sales in tax year 2020 would be considered for purposes of calculating the apportionment formula. The bill also provides that the Comptroller shall assess interest and penalties if a corporation pays estimated taxes less than 90 percent of the required tax. The Maryland Senate has also recently introduced combined reporting legislation that, if enacted, would only apply to retail trade and food and beverage establishments beginning in 2021. The Corporate Tax Fairness Act of 2020 can be found here, and the Small Business Fairness Act can be found here.

November 2019

Income Taxes: On November 4, 2019, the Supreme Court of the United States denied a taxpayer's petition to review the non-standard apportionment method used by the Comptroller of Maryland. The Comptroller's position was that when certain relationships exist between out-of-state entities and their in-state affiliates, the entities can be viewed as part of a unitary business enterprise. In particular, when there is a substantial mutual interdependence between the entities, an alternative apportionment method is proper. Taxpayer viewed this Comptroller's position as being an unconstitutional tax on the income of interstate business.

October 2019

Sales Tax: Wayfair has hit Maryland! The General Assembly passed a law during their 2019 legislative session which requires a marketplace facilitator to collect Maryland sales and use tax on a retail sale by a marketplace seller to a buyer in Maryland. The Comptroller of Maryland has finally issued its much anticipated guidance regarding the new law, which went into effect October 1, 2019. The law, much like "Wayfair" laws passed in other states after the Supreme Court decision in Wayfair v. South Dakota, sets minimum thresholds which trigger the requirement to collect sales tax. Under the new guidance, marketplace facilitators and out-of-state vendors who make direct sales are required to register to collect Maryland sales and use tax if they sell tangible personal property or taxable services for delivery in Maryland and satisfy, during the previous calendar year or current calendar year, either of the following criteria: (a) gross revenue from the sale of tangible personal property or taxable services delivered in Maryland exceeds $100,000; or (b) tangible personal property or taxable services were sold for delivery into Maryland in 200 or more separate transactions.

September 2019

Sales Tax: The gig economy and peer-to-peer transactions are a growing part of our economy, and states are taking notice. Maryland has enacted legislation to specifically subject peer-to-peer car sharing arrangements to sales tax. The Maryland legislature expanded the definition of "short-term vehicle rental" to include a shared motor vehicle used for peer-to-peer care sharing and made available on a peer-to-peer car sharing program. The legislation set the sales tax rate for these transactions at eight percent (as opposed to the standard six percent for most sales tax transactions). The taxable amount includes the sales price and all related charges, including delivery fees, cleaning fees, booking fees, protection packages, etc. With the rapidly growing world of peer-to-peer transactions, expect to see other states enact similar legislation to maximize sales tax revenue.

August 2019

Tax Crimes: The Comptroller of Maryland, the Maryland Attorney General's Office, continues to pursue criminal prosecutions for unscrupulous tax return preparers. Most recently, on July 25, a tax preparer pled guilty in Circuit Court to two counts of filing a false income tax return. It was determined that many of the Maryland tax returns he filed on behalf of his clients included false information. He included the false information to fraudulently minimize the taxpayers' Maryland tax liabilities and increase the tax refunds the taxpayers received from the State of Maryland. Based on the false and fraudulent tax returns he prepared and filed, his clients received tax refunds totaling approximately $90,000. While the preparer faced imprisonment for up to ten years on each count, the judge ultimately sentenced him to five years' incarceration, suspended, five years of supervised probation, and ordered him to pay restitution of approximately $90,000 to the State of Maryland. He is also prohibited from acting as a tax preparer.

July 2019

Apportionment: On June 27, 2019, the Maryland Court of Special Appeals concluded that the Comptroller of Maryland had the discretion to use a "blended apportionment factor", instead of its standard apportionment formula, since the standard apportionment factor would have resulted in a factor of zero. This ruling dealt with an out-of-state wholly owned subsidiary which arguably did not have real economic substance as a separate business entity apart from its parent corporation that did business in Maryland. In finding that nexus exists, the court considered (1) the out-of-state subsidiary's dependence on its parent for its income, (2) the circular flow of money between the out-of-state subsidiary and its parent, (3) the out-of-state subsidiary's reliance on its parent for core functions and services, and (4) the general absence of substantive activity from the out-of-state subsidiary that was in any meaningful way separate from its parent. See court's finding here.

June 2019

Sales Tax: Effective June 1, 2019, short-term rentals made by short-term rental platforms are now subject to the Maryland sales and use tax. The short-term rental platforms must collect and remit the tax to the Comptroller. The legislation broadly defines short-term rentals as "the temporary use of a short-term rental unit to provide accommodation to transient guests for lodging purposes in exchange for consideration." A short-term rental platform is an Internet-based entity that (1) advertises available short-term rental units and (2) receives compensation for booking transactions on behalf of the owner. See Senate Bill 533.

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