Beginning July 1, 2026, sales made at qualifying elementary and secondary school book fairs will be exempt from Maryland sales and use tax. The change is intended to help schools keep more of the money raised through book fairs and direct those funds toward educational programs and student resources.
Under the new law, the exemption applies to book fairs held in person on school property and are operated by a school, parent-teacher organization (PTO) or another nonprofit organization associated with the school. To qualify, the net proceeds from the event must be used solely for the educational benefit of the school or its students. In the case where a school partners with third party book fair vendor, sales can still qualify for the exemption, if students, teachers, school staff, or PTO members help manage the event and the proceeds support educational purposes.
Supporters of the new measure believe that the change will allow schools to maximize fundraising efforts while encouraging literacy and access to books. Book fairs have long been a popular way for schools to raise funds for libraries, classrooms, and other educational initiatives. Removing the sales tax burden means more dollars can remain within the school community.
The new exemption becomes effective on July 1, 2026, and adds book fairs to Maryland’s growing list of sales tax exemptions available to certain nonprofit and educational organizations. Book vendors helping schools and PTO’s plan future books fairs should review the law’s requirements to ensure events meet the proper qualifications to make the book fair sales exempt.
(House Bill 358 Sales and Use Tax – Elementary or Secondary School Book Fairs – Exemption, State of Maryland General Assembly, Approved April 28, 2026)