Modular Buildings

Sales of modular buildings are subject to Maryland's 6 percent sales and use tax and the rate is applied to 60 percent of the taxable price.

A "modular building" would include:

• Single-family or multifamily houses;
• Apartment units;
• Commercial buildings; and
• Certain permanent additions to single-family or multifamily houses, apartment units, or commercial buildings.

The permanent additions are taxable if they are comprised of one or more sections that are:

• Intended to become real property;
• Primarily constructed at a location other than the permanent site at which they are to be assembled;
• Built to comply with the standards for industrialized buildings under Title 12, Subtitle 3 of the Public Safety Article; and
• Shipped with most permanent components in place.

If your average tax liability for out-of-state purchases is more than $100 per month, you are required to report and remit the tax every month. If your tax liability is less than $100 per month, you may file on a quarterly basis.