December 10 - First Aid & CPR Training, 8-12 PM @ ABC Towson. Contact Mike Barton for more information. 

 December 11 - Flagger Certification, 8-12 PM @ ABC Towson. Contact Mike Barton for more information. 

 December 13 - Holiday Network, 6-8 PM @ Baltimore Museum of Industries. Contact Danielle Hardy for more information. 

 December 17 - Orientation to the Construction Industry, 6-8 PM @ Baltimore Museum of Industry. Contact Danielle Hardy for more information.

 January 7 - First Aid & CPR Training, 8-12 PM @ ABC Towson. Contact Mike Barton for more information.

 January 10 - Chapter's Leadership Conference @ Towson Sheraton. Contact Danielle Hardy for more information. 

 January 17, 18 December 13 - OSHA 10 Hour, 8-2 PM @ ABC Towson. Contact Mike Barton for more information. 

 January 17 - Best Practices Network, 6-8 PM @ Pier 5 Hotel. Contact Danielle Hardy for more information. 

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Contractors Exempted from Sales Tax Increase
Purchases of Construction Materials for  pre-Jan 3, '08 Contracts

Written by: Stephen M. Cordi with Ober, Kaler, Grimes & Shriver

     On November 19, 2007, Governor Martin O’Malley signed into law House Bill 5, increasing the Maryland sales tax from 5 percent to 6 percent, effective January 3, 2008.  The legislation did, however, include an exemption for contractors from the 1 percent increase for construction materials purchased to fulfill contracts entered into before January 3, 2008.  

     The Maryland Comptroller’s Office has issued Bulletin 07-02 describing the exemption and explaining how it may be claimed.  The Bulletin is available on the Comptroller’s web site at www.marylandtaxes.com.  The key features of the exemption are:

1) There are 3 ways to claim the exemption:  
File for refund directly with the Comptroller on Form COT/CD 205.  For contractors who file sales tax returns, deduct up to $1,000 on Line 9 of the return.  Claim the exemption directly from vendors using Form COT/CD 132 (a sample is included in Bulletin 07-02).

2) Vendor participation is voluntary; vendors are not required to accept Form COT/CD 132.  You should ask your vendors if they will recognize the exemption certificate.

3) Contractors reporting the tax on out-of-state purchases for eligible projects should include on the 5 percent tax, along with any 6 percent transactions, on line 7 of their sales tax returns.

4) The exemption applies only to materials incorporated into the realty.   Consumables, supplies, tools, equipment and services are excluded.

5) Bulletin 07-02 suggests, but does not expressly state, that the exemption applies if a contractor places a bid which cannot be altered or withdrawn before January 3, 2008, even though acceptance occurs on or after that date.  ABC-Baltimore is seeking clarification from the Comptroller’s Office.