In 2024, Maryland has tightened and broadened its affiliate nexus rules to more comprehensively capture remote sellers. The key expansions include:

• Broadened Definitions: Affiliate nexus now encompasses a wider range of related entities, including subsidiaries and partners engaged in customer solicitation or facilitation.

• Lowered Thresholds: The economic threshold remains at $100,000 in sales, but the 200 transaction count has been removed, simplifying nexus determination.

• Inclusion of Digital Facilitators: Third-party vendors like digital product facilitators and online marketplaces are now considered part of affiliate nexus, especially those handling digital goods.

• Enhanced Scrutiny: Affiliate activities such as advertising, promotion, and customer referral are now more stringently monitored to establish nexus.

• Expanded Physical Presence: Temporary locations, pop-up shops, and remote digital service providers performing services within Maryland are now included under affiliate nexus rules.

Impact on Remote Sellers: Remote sellers with affiliates engaged in Maryland must now register for sales tax if their sales exceed $100,000, regardless of transaction count. This expansion ensures that more remote and affiliated entities are accountable for sales tax collection and remittance, increasing compliance obligations and reducing the likelihood of tax evasion by remote sellers.