Baltimore, MD asked in Tax Law for Maryland

Q: Can sales taxes be applied to appliances that stay with the home if sold?

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1 Lawyer Answer
Eric M Wiechert
Eric M Wiechert
  • Tax Law Lawyer
  • Eau Claire, WI

A: You really should talk with an attorney and review the sales tax statutes, rules, and administrative interpretations pertinent to items that become fixtures to real property.

Normally state sales tax is collected at the retail level. Consequently, once a sale is made to the end consumer by a seller who hasn't previously paid a retail sales tax sales tax should be collected. Each good is normally subject to sales tax one time. And if the good is substantially improved - its possible to be subject to sales tax again agter the improvement. Upstream sales between a manufacturer and a wholesaler (or between two wholesalers) aren't normally subject to sales tax. If for some reason the sales tax was never collected on the appliance - which seems improbable - then its possible that the sale could be subject to a sales tax. Even with that, most jurisdictions have exceptions for occasional sales.

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