TT-47 – OTP tax structure and guidance
What businesses must know about ongoing OTP tax obligations and filing requirements
Maryland reissued guidance on the OTP tax to clarify how the tax is administered and reported, and this page explains the tax structure, filing requirements, and ongoing compliance responsibilities.
What you need to know
- OTP tax remains 15% of wholesale cost
- Wholesalers are primarily responsible for tax payment
- Retailers and consumers must file if tax is unpaid
- Registration is required before selling OTP
Who This Applies To
This guidance applies to:
- OTP wholesalers
- OTP retailers
- Consumers possessing untaxed OTP
OTP Tax Structure
Maryland’s OTP tax:
- Is set at 15% of wholesale cost
Wholesale cost:
- Excludes discounts, rebates, or allowances
Who Pays the Tax
Primary responsibility:
- Wholesalers must remit the tax
If tax is not paid:
- Retailers and consumers must file and pay
Reporting Requirements
Wholesalers must:
- File monthly tax returns
Retailers and consumers must:
- File quarterly returns when required
Registration Requirement
Businesses must:
- Register before selling OTP
This applies to:
- Wholesalers
- Retailers
There is:
- No registration fee
Filing Deadlines
- Monthly returns are due the 21st of the following month
- Quarterly returns are due after each quarter
Enforcement and Penalties
Failure to comply may result in:
- Interest on unpaid tax
- Penalties up to 25%
- Confiscation of untaxed products
What This Means for Businesses
Businesses should:
- Ensure tax is paid at the correct rate
- File all required returns on time
- Maintain documentation of tax payments
- Register before engaging in OTP sales
Important Notes
- This guidance reinforces existing tax requirements
- Reporting obligations remain unchanged
- Compliance depends on accurate documentation
Need Help?
For questions about OTP tax, contact the Maryland Comptroller’s Office: 410-260-7980