By: Michael Colavito, SALT Director

At a glance  

• The main takeaway: Maryland published guidance explaining the new multiple points of use (MPU) rules that were enacted as part of the state’s new 3% tax on technology-related services, and it includes information on the process for obtaining MPU certificates.   
• Assess the impact: Understanding the application of these new MPU rules and the process for obtaining and using MPU certificates will be crucial for purchasers of taxable technology services and digital products to reduce their Maryland sales tax burden.
• Take the next step: Aprio’s State and Local Tax (SALT) team can advise your business on the impact of state tax law changes and guide you through the new Maryland MPU rules.

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On July 1, 2025, Maryland began imposing a 3% sales tax on a broad range of software and technology-related services. This change was enacted as part of the state’s Budget Reconciliation and Financing Act of 2025 (HB 352), which was signed into law by the Governor in May.

In addition, the legislation included rules allowing buyers of both the newly-taxed “tech” services and taxable digital codes and products (which Maryland began taxing a few years ago) to provide vendors an MPU certificate. These rules generally allow the buyer to notify the vendor that the use of the service or product will occur in multiple states to ensure that a state’s sales tax is only imposed on the portion of the sale related to in-state use/consumption. Several states have MPU rules related to sales of software and digital products.

The Maryland Comptroller has issued two technical bulletins to help buyers understand the new tax:

• Technical Bulletin No. 56 – Sales and Use Tax on Data or Information Technology Services and Software Publishing Services: Provides a Q&A about the new taxable services.
• Technical Bulletin No. 54 – Multiple Points of Use Certificates (MPU): Explains how buyers can request and use an MPU certificate when purchasing certain taxable products and services.

In this article, we explain the Comptroller’s new MPU guidance.

Maryland’s MPU Rules

Under Maryland law, an MPU certificate is issued by a buyer to a vendor to notify the vendor that the taxable services/products being purchased will be used both inside and outside of Maryland or resold to a member of an affiliated group. These rules apply to purchases of taxable:

• Data and information technology services
• Software publishing services
• Digital codes
• Digital products

Issuing a valid MPU certificate relieves the vendor from the obligation to collect sales tax from the buyer. Instead, the buyer, or the member of the affiliated group to whom the items were resold, is required to remit use tax on the apportioned use in Maryland. 

If an MPU certificate is not presented, the vendor is required to collect and remit sales tax on the entire sales price when the service agreement and/or invoice indicates that the product or service will be delivered to and used by the buyer in Maryland. Thus, an MPU certificate shifts the tax remittance responsibility from the vendor to the buyer, allowing the buyer to remit an apportioned tax based on the extent that the purchased product or service is used in Maryland.  This results in the buyer paying less Maryland sales tax. 

Understanding Maryland’s MPU Rules

The Comptroller’s bulletin provides taxpayers with guidance on several important aspects of the state’s MPU rules, which are outlined below.

MPU Certificate Applicability 

It’s important for taxpayers to recognize that although the MPU certificate rules were enacted as part of the legislation that implemented the new 3% tax on certain software and information technology-related services, MPU certificates can also be used by buyers when purchasing taxable digital products and digital codes. Maryland did not previously have MPU certificate rules related to digital products and digital codes, which became subject to the state’s sales tax in 2021.

Procedure for Requesting an MPU Certificate

• To issue a valid MPU certificate, a buyer must have a Maryland sales and use tax account. 
• The Comptroller must first enable a buyer to submit a request for authorization to use an MPU certificate. To enable the ability to submit an application for an MPU certificate, buyers must email MPUrequest@marylandtaxes.gov.
• A request for authorization to use an MPU certificate must be submitted to the Comptroller through the buyer’s online Maryland Tax Connect account.
• A buyer must submit a request for MPU certificate authorization to the Comptroller for each transaction for which a buyer wishes to use an MPU certificate.
• However, a buyer may issue a single MPU Certificate to apply to all future charges and automatic renewals for a purchase that relates to a subscription. Interestingly, the bulletin indicates that this single MPU certificate for subscriptions is only permitted where the Maryland apportionment remains the same.   
• The bulletin outlines the information that must be included in a request for MPU certificate authorization, including the percentage of the product or service use apportioned to Maryland.

Consistent Method for Apportionment

The bulletin does not include any significant detail regarding the acceptable methods for a buyer to determine the apportioned in-state use of a digital code, digital product, data or information technology service, or software publishing service. Instead, the bulletin merely provides that “[a] buyer may use any reasonable method of apportionment that is supported by the buyer’s records as they exist at the time of the sale” and that the method must be consistent and uniform.

The bottom line

Although it’s somewhat unclear from the bulletin published by the Comptroller, it appears that buyers will be electronically issued an MPU certificate through Maryland Tax Connect after submitting a request for authorization. The MPU certificate will specifically apply to purchases made from the vendor indicated in the request for authorization.

Finally, the bulletin does not include a detailed outline regarding the use of an MPU certificate in the context of purchases that a buyer makes related to resales to affiliated group members or related pass-through entities.  However, the bulletin does state that when a buyer issues an MPU certificate for this purpose, the use tax remittance on the apportioned use in Maryland can be done by either the buyer or the affiliated group member/related pass-through entity to whom the items were resold.  If the related entity fails to remit the use tax as required, the buyer who issued the certificate is liable for the use tax. 

Aprio’s SALT team regularly advises clients on the impact of state tax law changes, and we can help you understand how these new Maryland MPU rules will apply to your business. We constantly monitor these and other important state tax topics, and we will include any significant developments in future issues of the Aprio SALT Newsletter