By Saleem A. Shareef, Esq., Checkpoint News
On May 26, 2026, Maryland Governor Wes Moore signed legislation that provides a sales and use tax exemption in a target redevelopment area in Washington County. (L. 2026, S193 (c. 731), effective 07/01/2026, until 06/30/2036.)
Target redevelopment area tax exemption
The sales and use tax does not apply to a sale of construction material or warehousing equipment if: (1) the material or equipment is purchased by a person solely for use in a target redevelopment area; and (2) the buyer provides the vendor with evidence of eligibility for the exemption issued by the Maryland Comptroller. For at least three years after the date of the sale, the buyer must maintain a record of the amount of sales and use tax that was not paid as a result of the exemption. On or before October 1, 2027, and each subsequent October 1, each buyer that receives a sales and use tax certificate must report to the comptroller the amount of sales and use tax that was not paid as a result of the exemption during the immediately preceding fiscal year.
“Target redevelopment area” means real property in Washington County that: (1) is commonly known as the Mount Aetna Technology Park and accessible from Robinwood Drive, Mount Aetna Road, and Yale Drive; and (2) is located in an Office, Research, and Industry zoning district.
“Construction material” means an item of tangible personal property that is used to construct or renovate a building, a structure, or an improvement on land and that typically loses its separate identity as personal property once incorporated into the real property. Construction material includes: building materials, building systems equipment, landscaping materials, and supplies. “Warehousing equipment” means equipment used for material handling and storage, including racking systems, conveying systems, and computer systems and equipment.
Take your tax and accounting research to the next level with Checkpoint Edge and CoCounsel. Get instant access to AI-assisted research, expert-approved answers, and cutting-edge tools like Advisory Maps and State Charts. Try it today and transform the way you work! Subscribe now and discover a smarter way to find answers.
