Thursday, June 16, 2011
Tax Free Flags, Sometimes
With all of the patriotic holidays and specials days that occur in the spring and summer I needed to replaced the flags burnt in the house fire. Over the past month or so I have purchased a couple of flags and banners, mostly from Michaels in Salisbury (using that 40% off coupon). Now in Maryland there is no 6% sales tax on the American Flags, Maryland flags, POW/MIA flags and star-spangled banners. Maryland is one of 14 states that exempt flags from sales tax - as they say there is no tax on patriotism. But as it turns out it is not entirely true because as with many things it is the details that creates the problems. I recently was going thru my receipts for those items and two items I had purchased were Flag banners and there was no sales tax on them. The other two items were two flags, actually it was the flag and the pole and hardware. There was sales tax on those two items. It would seem what I had thought was flag purchases was really a wood pole accessory kit and the flag in the packaging was apparently thrown in free? Anyway due to the way it was labeled it was taxable. Too add insult to injury altho the package had a big sticker saying FLAG 100% MADE IN U.S.A. (which as it turns out I was not buying) in reading the package the Wood Pole Accessory Kit was made in China. So long story short buy in Delaware - it is alot less confusing and you know you aren't going to pay sales tax on anything - even Chinese made items.