The Comptroller of Maryland issued Technical Bulletin No. 44 on December 22, 2023, to provide guidance on submitting private letter ruling (PLR) petitions beginning January 2024.
The Comptroller of the Treasury adopted a new regulation with the purpose of providing a regulatory process for Maryland taxpayers to submit a petition for PLRs.
PLR petitions are written requests for rulings of specific facts around how state tax laws and regulations and other issues the Comptroller is responsible for are applied.
Requests can be submitted on topics of income tax, sales and use tax, motor fuel tax, motor carrier tax, alcoholic beverage tax, tobacco tax, admissions and amusement tax, digital advertising gross revenues tax, estate tax, and boxing and wrestling tax.
Prior to submitting a petition, the taxpayer should review existing guidance for the specific state and local tax law/regulation.
A petition must be submitted with all items on the Petition Submission Checklist.
Petitions need to be in writing and sent to the Legal Division of the Comptroller’s Office via email to CompMdLegal@marylandtaxes.gov or delivered by mail/in person at the Comptroller of Maryland’s office.
The Comptroller will confirm receipt of the petition, review the petition, and either issue a PLR or a denial of the petition.
This change directly affects anyone in the state of Maryland who needs guidance or answers pertaining to the application of state and local tax laws and fees that are administered by the Comptroller.
Typically, the person directly affected by the state tax laws and regulations will be the petitioner of the PLR. However, an authorized representative is also acceptable to submit the petition as long as the request is accompanied by Maryland form 548 Power of Attorney.
The bulletin was issued on December 22, 2023, and went into effect as of January 1, 2024.
Once a PLR is issued, it is final and cannot be appealed. It’s binding with the Comptroller for 7 years from the date issued unless it becomes void, revoked, or modified.
The petitioner, however, isn’t bound to the PLR. They may either rely on the ruling or decide to take the opposing position. The petitioner is then responsible for any tax implications for taking the opposing stance.
A redacted version of the PLR may be anonymously published to the Comptroller’s website at the Comptroller’s discretion. These versions of the PLR are intended as informational and are only binding on the Comptroller as they relate to the petitioner.
However, the redacted PLR may be used by the public as informal guidance.
Talk to our experts for guidance on existing MD state and local tax matters or for assistance submitting your PLR.
By: Angie Kirk, Manager, State and Local Tax
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