Is installation labor taxable?
No. A separately stated installation charge, made known to the customer at the time of sale, is not subject to tax. A charge to place a complete, separable and functioning unit at the job site is an installation charge. However, a charge for assembling raw materials, components, sub-assemblies or parts into a functioning industrial unit or the creation of support systems, such as piping and electrical systems, is subject to tax. Does the tax apply to out-of-state fabrication? The tax applies to fabrication labor purchased from out-of-state sources if the property is delivered or brought into Maryland. The value of your own labor applied to your own property, however, is not taxable. Is a Maryland vendor required to collect the tax on charges for fabricating property which is delivered outside the state? No. So long as the vendor delivers the property fabricated outside the state, the Maryland tax is not applicable. If the vendor is engaged in business in the state of destination, howev
