Tax Free Week in Maryland

Comptroller Peter Franchot is promoting tax free week in Maryland.

Maryland Comptroller Peter Franchot’s office is gearing up for Shop Maryland, the state’s tax-free week.

Beginning Sunday, August 10, consumers who buy clothing and shoes priced $100 or less will be spared the state’s 6 percent sales tax for one week, ending Saturday, August 16.

“Each year this initiative helps Maryland families and gives large and small retailers a boost in these financially challenging times,” said Comptroller Peter Franchot. “All hard-working Maryland moms and dads deserve this annual tax break as they prepare to send their children back to school.”

The Comptroller will be promoting the annual shopping event at various retail locations throughout the state to encourage shoppers to take advantage of the sales tax break on back-to-school clothes and shoes. He will visit the Mondawmin Mall in Baltimore, Hagerstown Premium Outlets, Velvet Lounge in Frederick, Westfield Annapolis Mall, Tanger Outlets-National Harbor and the Queenstown Premium Outlets.

Resulting from legislation passed in the 2007 special session of the Maryland General Assembly, a tax-free week will occur every year during the second week in August, until the legislature decides to revisit the issue. During this period, each qualifying article of clothing or footwear selling for $100 or less is exempt from sales tax, regardless of how many items are purchased at the same time.

Businesses selling items that are not eligible for inclusion in the tax-free week can still participate in Shop Maryland. Under “Sellers Privilege,” other unqualified merchandise can be sold tax-free but the retailer is responsible for paying the sales tax owed to the state.

“Back-to-school shopping is the second biggest shopping season for retailers,” said Maryland Retailers Association President Patrick Donoho. “Tax Free Week has become a welcomed opportunity for consumers to save on clothing and footwear as they prepare for the new school year.

In these tough economic times, retailers throughout the state will be offering promotions and sales to get shoppers into their stores.”

For more information on qualifying items, visit the Comptroller of Maryland’s Website, email or call 410.260.7980 in Central Maryland or toll-free at 1.800.MD.TAXES.

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