1. A. The incidence of the gross receipts tax is intended to fall on a company providing services to the ultimate retail consumer. Therefore, in order to avoid taxing the same transaction more than once, any revenues received by a company for services that will later be resold may not be considered gross receipts as long as the reseller is subject to the tax on those revenues in this State or any other state. For example:

   1. (1) Network access, billing, or other revenues derived from the provision of exchange access or other services to an interexchange carrier are not considered gross receipts for a local exchange carrier;
   2. (2) Revenues derived from the transmission of gas or electricity to another gas or electric company for the purpose of resale are not considered gross receipts.
2. B. The amount and type of all revenues excluded from gross receipts shall be clearly identified in the filing of the annual tax return. The information necessary to support the amount of the exclusions shall be retained and made available to the Department upon request or audit.

Authority: Tax-General Article, §§8-402, 8-402.1, 8-404, 8-408, 13-303, 13-402, 13-701, 13-702 and 13-708; Tax-Property Article §2-201;
Annotated Code of Maryland

Effective date: February 22, 1988 (15:4 Md. R. 474)

Regulation .01B amended effective February 20, 1989 (16:3 Md. R. 347); October 26, 1992 (19:21 Md. R. 1893); December 4, 1995 (22:24 Md. R. 1904); June 1, 1998 (25:11 Md. R. 822)

Regulation .01B amended as an emergency provision effective January 1, 2000 (27:2 Md. R. 141)

Regulation .01B amended effective April 17, 2000 (27:7 Md. R. 707)707

Regulation .02B amended effective February 20, 1989 (16:3 Md. R. 347)

Regulation .02 amended and recodified to Regulation .03 and new Regulation .02 adopted effective April 17, 2000 (27:7 Md. R. 707)

Regulation .03 repealed effective October 26, 1992 (19:21 Md. R. 1893)

Regulation .03F amended effective September 21, 1998 (25:19 Md. R. 1497)

Regulation .03 amended and recodified to Regulation .04 effective April 17, 2000 (27:7 Md. R. 707)

Regulation .04 amended and recodified to Regulation .03 effective October 26, 1992 (19:21 Md. R. 1893)

Regulation .04D amended effective February 20, 1989 (16:3 Md. R. 347)

Regulation .04E amended effective February 20, 1989 (16:3 Md. R. 347)

Regulation .04F adopted effective February 20, 1989 (16:3 Md. R. 347)

Regulation .04 amended and recodified to Regulation .05 effective April 17, 2000 (27:7 Md. R. 707)

Regulation .05 amended effective February 20, 1989 (16:3 Md. R. 347)

Regulation .05 amended and recodified to Regulation .04 effective October 26, 1992 (19:21 Md. R. 1893)

Regulation .06 repealed effective February 20, 1989 (16:3 Md. R. 347)

Chapter revised effective April 17, 2000 (27:7 Md. R. 707)

Regulation .04 amended effective September 15, 2014 (41:18 Md. R. 1010)

Regulation .05B amended effective June 19, 2006 (33:12 Md. R. 998)