Maryland Gives Businesses a Break with Sales Tax Filing and Payment Deadlines

To help businesses weather the devastating and ongoing effects of the COVID-19 pandemic, the Comptroller of Maryland has extended filing and payment deadlines for certain Maryland business taxes.

Maryland taxpayers now have until April 15, 2021, to file and remit eligible business taxes that would be due in January, February, or March 2021. The extension will be granted automatically; no interest or penalties will be assessed on returns filed and taxes paid by April 15, 2021.

The following taxes and fees qualify for the extension:

Admissions and amusement tax
Alcohol tax
Motor fuel tax
Sales and use tax
Tobacco tax
Tire recycling and bay restoration fees due between January 1, 2021, and April 14, 2021

Separate returns and payments should be remitted for each filing period, as if they’d been filed according to their original due dates.

Additionally, businesses, self-employed individuals, and independent contractors have until April 15, 2021, to file and remit estimated income tax returns and payments due January 15, 2021.

In announcing the relief program, Comptroller Peter Franchot said, “My directive for a tax forbearance that is interest and penalty free is a direct and immediate economic stimulus for Maryland businesses and workers — a decision that we estimate keeps more than $1 billion in consumers’ pockets and helps businesses keep their lights on.”

This is similar to the relief program Maryland offered in early 2020, when COVID-19 first forced businesses to close or operate at limited capacity. The comptroller hopes the delayed due dates will “alleviate financial pressures” for businesses waiting to receive federal grants, loans, and relief funds. Since “taxpayers will remit what is due” after the 90-day breather, the relief program won’t affect the state budget.

Additional details can be found in Maryland Tax Alert 01-06-21. To learn more about pandemic-related tax relief programs in other states and countries, see our COVID-19 tax news and resource hub.

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Gail Cole has been researching, writing, and reporting tax news for Avalara since 2012. She’s on a mission to uncover unusual tax facts and make complex laws and legislation more digestible for accounting and business professionals — or anyone interested in learning about tax compliance. Get more sales tax news from the Avalara blog.

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