Tax News

CCH (cch.taxgroup.com) reports:

Maryland Governor Martin O'Malley has signed legislation that, effective January 3, 2008, increases the state sales and use tax rate from 5% to 6% for each exact dollar on a taxable price of $1 or more. For that part of a dollar in excess of an exact dollar, the rate on a taxable price of $1 or more is increased as follows:
-- 1 cent if the excess over an exact dollar is at least 1 cent but less than 17 cents;
-- 2 cents if the excess over an exact dollar is at least 17 cents but less than 34 cents;
-- 3 cents if the excess over an exact dollar is at least 34 cents but less than 51 cents;
-- 4 cents if the excess over an exact dollar is at least 51 cents but less than 67 cents;
-- 5 cents if the excess over an exact dollar is at least 67 cents but less than 84 cents; and
-- 6 cents if the excess over an exact dollar is at least 84 cents.
Currently, the sales and use tax rate on a taxable price of $1 or more is 5 cents for each exact dollar and 1 cent for each 20 cents or part of 20 cents in excess of an exact dollar.
In addition, the sales and use tax rate on a taxable price of less than $1 is:
-- 1 cent if the taxable price is 20 cents;
-- 2 cents if the taxable price is at least 21 cents but less than 34 cents;
-- 3 cents if the taxable price is at least 34 cents but less than 51 cents;
-- 4 cents if the taxable price is at least 51 cents but less than 67 cents;
-- 5 cents if the taxable price is at least 67 cents but less than 84 cents; and
-- 6 cents if the taxable price is at least 84 cents.