Maryland

State of Maryland

Maryland Utility Sales Tax Exemption

Maryland allows for utility consumed directly and predominantly in a production activity to be exempt from sales tax. Production activities include assembling, manufacturing, processing, or refining tangible personal property for sale or resale. Production activities do not include processing food or a beverage by a retail food vendor or operating administrative or commercial facilities, such as offices, sales and display rooms, retail outlets and storage facilities, including refrigerated storage facilities.

COMAR 03.06.01.32-2

Maryland Sales Tax Exemption Certificate

The ST-206 Exemption Certificate is the document that must be filed in Maryland in order for a business to claim the Utility Sales Tax Exemption.

Energy Study Requirement

In Maryland, a detailed energy study must be performed to identify the exact percentage of utility that is exempt from sales tax. This includes calculating the annual consumption for each device that is consuming the utility and then distinguishing between production devices and non-production devices.

Our Process
01. Discovery

SmartSave investigates client’s current utility situation, and quickly identifies if the company is eligible to save on its utility sales tax through the exemption.

02. Energy Study

A SmartSave energy specialist performs an in-depth study at the business location to determine the exact proportion of energy use that is exempt from taxation.

03. Request

All necessary information is compiled into a report and submitted to the required utility companies and state agencies. SmartSave works hand-in-hand with these entities to ensure that all reports are accurate and compliant with statute.

04. Certification

Once the exemption request is approved, your company receives a refund on the past 2-4 years of overpaid utility sales tax, and stops paying sales tax on all certified production items, generating significant savings for the business each month moving forward.

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