1 - Are out-of-state nonprofit charitable, educational and religious organizations entitled to a Maryland exemption certificate?
To qualify for a Maryland exemption certificate, an out-of-state nonprofit organization that is exempt from income tax under Section 501(c)(3) or Section 501(c)(19) of the Internal Revenue Code must have a location in Maryland or be located in an adjacent jurisdiction and satisfy one of the following conditions:
- The organization provides its services in Maryland on a routine and regular basis;
- The adjacent jurisdiction does not impose a sales or use tax on a sale to a nonprofit organization made to carry on its work; or
- The adjacent jurisdiction has a reciprocal exemption from sales and use tax for sales to nonprofits located in adjacent jurisdictions similar to Maryland's exemption.