Among the 45 states that levy sales taxes, Maryland ranks 34th for its per capita sales tax collections, according to a recent analysis by the Tax Foundation.
Maryland’s sales and use tax is 6 percent. State sales taxes apply to purchases made in Maryland while the use tax refers to the tax on goods purchased out of state. The State collected $762 in sales tax per capita in FY 2017.
The Department of Legislative Services estimates total sales tax revenues of approximately $4.8 billion in FY 2019.
According to the Tax Foundation:
In fiscal year (FY) 2017, the highest state sales tax collections per capita were found in Hawaii ($2,269), the District of Columbia ($2,045), Washington ($1,959), Nevada ($1,586), South Dakota ($1,225), and Florida ($1,208). Hawaii and South Dakota have broad sales tax bases that include many services, contributing to high collections per capita. (Hawaii’s sales tax base is broader than economists recommend, applying not just to final consumer goods and services, but also to many business-to-business transactions, resulting in harmful tax pyramiding.)
The lowest state sales tax collections per capita are found in Virginia ($469), Colorado ($531), Alabama ($545), Georgia ($549), and Missouri ($590). In these states, a combination of low rates and relatively narrow bases contributes to low collections per capita.
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