Sales of modular buildings are subject to Maryland's 6 percent sales and use tax and the rate is applied to 60 percent of the taxable price.
A "modular building" would include:
- Single-family or multifamily houses;
- Apartment units;
- Commercial buildings; and
- Certain permanent additions to single-family or multifamily houses, apartment units, or commercial buildings.
The permanent additions are taxable if they are comprised of one or more sections that are:
- Intended to become real property;
- Primarily constructed at a location other than the permanent site at which they are to be assembled;
- Built to comply with the standards for industrialized buildings under Title 12, Subtitle 3 of the Public Safety Article; and
- Shipped with most permanent components in place.