In 2018, the U.S. Supreme Court decision in South Dakota vs. Wayfair, Inc. Et. Al required that out-of-state sellers must register and collect sales tax. Many of you have received this information from hearing aid manufacturers, who are now required to collect sales tax, unless a tax-exempt certificate is produced. Upon receiving this information, the Maryland Academy of Audiology reached out to the State of Maryland to determine what products are tax-exempt.
Current Annotated Code of Maryland Tax-General Article 11-211(b) states that sales tax does NOT apply to a hearing device, a battery for an artificial hearing device, and a replacement cord for an artificial hearing device.
Audiologists should not interpret this language on their own, as the state has been very forward stating that unless the item is specifically mentioned (i.e. hearing device, battery for a hearing aid, or replacement cord of an artificial hearing device), everything else needs to be taxed. All hearing aid-related devices and supplies not mentioned in the code above are subject to the current 6% sales tax and needs paid to the State. This includes, but is not limited to battery chargers, hearing aid repairs (when parts are involved), receivers, domes, earmolds, and more.
MAA has been working on this issue over the past two years and currently has legislation in the House (H 1326) to update the Tax Code. You can help pass this legislation and update the tax code to exempt earmolds and hearing aid-related accessories and repairs. Show your support: