Sales and Use Tax - Taxable Business Services - Alterations

Maryland Senate Bill 1045 modifies the state's sales and use tax code to include labor and services for "alterations" (such as construction, renovation, or installation work) under taxable business services. It directly affects contractors, renovation firms, and businesses providing on-site labor for building modifications. The bill amends tax definitions to explicitly make "labor or service for application or installation" subject to sales tax when performed for alterations, removing previous exemptions. This change applies to commercial properties and services where the work is part of a taxable transaction, as specified in revised sections of Maryland's tax code (11-101(l)(3) and 11-104(l)).