| Southern Maryland News |
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State's Seven-Year Case Finally Ends
ANNAPOLIS --- Maryland Comptroller William Donald Schaefer today announced the satisfactory conclusion of lengthy litigation with Furnitureland South, Inc., a North Carolina furniture dealer, and its preferred carrier, Royal Transport, Inc., which contested the obligation to collect and remit the state's 5 percent tax on sales and deliveries to Maryland customers. A settlement, effective July 1, has been reached with the firms although tax confidentiality laws prohibit the disclosure of agreement particulars.
"For more than seven years, we've argued that Furnitureland South must collect sales tax from Maryland customers. I'm pleased to announce they are doing so now," Comptroller Schaefer said.
Since 1997, the Comptroller's Office has been battling the companies in court over sales tax collection and remittance. The office argued that Furnitureland South and Royal Transport had a physical presence in the state, or "nexus," which obligated collecting sales tax. The case was first heard in Anne Arundel Circuit Court in August 1999. The judge ruled in favor of the Comptroller's Office, but Furnitureland South appealed the decision and the Maryland Court of Appeals reversed the lower court's ruling and dismissed the case due to procedural issues in 2001. Action against Furnitureland South and Royal ended up in Maryland Tax Court prior to the case's settlement.
"This is another victory in our effort to see that Maryland furniture retailers will no longer have to contend with unfair competition from businesses not collecting sales tax. We will continue to level the playing field for all businesses," said Comptroller Schaefer.
