Sales and Use Tax - Previously Purchased or Owned Personal Property - Exemption
Impact
If enacted, HB1197 will affect the state's tax code by adding a new exemption under the Article on Tax - General. Specifically, it provides that sales and use tax will not apply to retail transactions involving tangible personal property that was previously owned by someone other than the current vendor. This change could encourage more consumer participation in second-hand sales, potentially stimulating local economies and reducing waste through increased reuse of goods.
Summary
House Bill 1197 proposes a significant change to the sales and use tax system in Maryland by exempting certain sales of previously purchased or owned tangible personal property. The bill aims to alleviate the burden of sales tax on secondary sales of personal items, allowing individuals to sell items without incurring additional tax liabilities. This amendment is expected to benefit both consumers looking to buy second-hand goods and sellers of used items, thus promoting a more active second-hand market.
Contention
The bill has the potential to generate discussion concerning revenue implications for the state. Some legislators and tax policy analysts may express concerns about the financial impact of the exemption on state revenue, particularly in light of budgetary constraints. Opponents might argue that while the bill aids consumers, it could lead to decreased funding for essential services that rely on sales tax revenues. This aspect is likely to be a point of contention during legislative debates surrounding the bill.
Taxation, sales tax exemptions, sales and use tax exemption with local option provided for purchases of optical aids, including eyeglasses and contact lenses
Taxation, sales tax exemptions, sales and use tax exemption with local option provided for purchases of optical aids, including eyeglasses and contact lenses.