Publication 2-2002 - Cost of collection discount

Cost of Collection Discount

Senate Bill 323, The Budget Reconciliation and Financing Act of 2002 was passed by the Maryland General Assembly and signed by the Governor as Chapter 440, on May 16, 2002. The Comptroller of Maryland will be implementing the bill as of July 1, 2002 affecting changes in the amount of discount taken on the monthly returns of Licensed Dealers and Special Fuel Sellers. This discount, as authorized in Maryland Tax General Article 9-315, is to reimburse the licensed dealer or licensed special fuel seller for expenses incurred for the State in:

• keeping records;
• collecting and paying the tax; and
• preparing reports

The new rate will be computed at ½ of 1% on the first 10 cents of the motor fuel tax on each gallon of motor fuel. This rate will be one-half of the old rate. The rates for the allocations on sales, which you make to the identified customers, will not change.

The new rate will be used when you file your July 2002 return, which will be due September 3, 2002.

If you have any questions you may call the Motor Fuel Tax Bureau at (410) 260-7131, or e-mail to mft@marylandtaxes.gov.

Distribution: Dealers and Special Fuel Sellers