Maryland Corkage Law

By Dave Minogue (originally posted to Flickr as P4269130.JPG) [CC-BY-SA-2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons

This past April, Maryland passed a law approving corkage. Corkage is the practice of bringing your own wine to a restaurant that already has a wine menu. Corkage allows patrons to enjoy a wine that is not already stocked by the restaurant. This differs from some Baltimore restaurants BYOB practice, as it only applies to restaurants that already have a liquor license that allows them to serve wine.

According to the Washington Post, there are three conditions set forth by the corkage law:

1. Underage or intoxicated persons should not be served, even their own wine;
2. A wine already on the restaurant’s list may not be brought in;
3. Restaurants must obtain a permit from their local liquor board.

Customers should note that restaurants do not have to allow corkage in their establishment. Additionally, restaurants that do allow corkage may charge a corkage fee to open a bottle for diners. The law does not stipulate a maximum or minimum for this fee. The Baltimore Sun asserts that corkage fees can range from $20 to $40 per bottle. Sales tax will apply to the corkage fee.

In Howard County, the Board of License Commissioners has issued a list of requirements pertaining to corkage practices. Included are the notations that patrons must order a meal and that bottles that are unfinished must be either poured out or recorked.

185-home subdivision planned for end of 29 in Ellicott City

From Explore Howard: 185 homes planned where Route 29 ends in Ellicott City

Domestic Partner Inheritance Tax Exemption for Real Property

I found this great FAQ guide (opens as a .pdf) from the Howard County Register of Wills, Byron E. MacFarlane, titled Domestic Partner Inheritance Tax Exemption for Real Property. This guide is very useful for anyone couple who is neither married nor in a civil union but owns a primary residence in joint tenancy.

Federal Challenge Filed by Pit Bull Owner

From the Baltimore Sun: Maryland pit bull ruling is challenged in federal court

Online Sales Tax

 I am frequently asked by small business owners what their responsibility is as to collecting sales tax from purchases generated by their websites. An online presence is different from a bricks and mortar storefront, and business owners may suddenly find themselves fulfilling orders for customers located across the country.

The short answer to this question is that if your business has a physical presence in a state, then you must collect local and state sales tax for that location. Examples of physical presences are an actual store, office, or warehouse. If your business does not have a physical presence in a state, then you do not have to collect sales tax for that state.

This rule is based on Quill v. North Dakota, a Supreme Court case that said mail-order businesses cannot be required to collect sales tax in a state unless the business has a physical presence there, as the burden on the sellers to comply with all state and local tax jurisdictions is too complex to manage and would strain interstate commerce. 504 US 298 (1992).

That being said, tax laws change all the time. If you are a small business owner looking to establish an online storefront, you should consult with your state's revenue agency to determine if you do have what is considered a physical presence. Additionally, the U.S. Small Business Administration is a great resource for answering questions about online payment services and sales.

Strict Liability for Pit Bulls - Part Two

On August 21, 2012, the Maryland Court of Appeals issued an Order relating to a Motion for Reconsideration (.pdf) filed in Tracey v. Solesky, the case decided earlier this year that held that strict liability exists for the owners of pit bulls and 'cross-bred pit bulls' and their landlords. Subsequently, Tracey filed a Motion for Reconsideration asking the Court to review their decision with regards to the inclusion of cross-bred pit bulls. The Court's order amends the earlier Opinion by deleting any reference to cross-breds, pit bull mix, or cross-bred pit bull mix.

The Humane Society has set up a helpline for Maryland families at 1-855-633-6471 (1-855-MDDOGS1).  Additionally, they have included on their website an information sheet (.pdf) for landlords and property owners. 

Happy Labor Day!

Our office will be closed Monday, September 3, 2012. We will reopen during normal business hours on Tuesday, September 4, 2012. We wish everyone a happy and safe Labor Day!