About the MATT Regulatory Division

The MATT Regulatory Division administers regulation, enforcement and business licensing functions for the Maryland Comptroller’s Office to secure voluntary compliance, maximize state revenue and provide fair tax treatment for Maryland businesses and individuals.

Alcohol and Tobacco Tax

The Alcohol and Tobacco Tax Office is responsible for monitoring the manufacture, storage, transportation, sale and distribution of alcoholic beverages and tobacco in Maryland, while collecting nearly $310 million annually in state taxes on beer, wine, distilled spirits, cigarettes and other tobacco products. This office issues licenses and permits, maintains automated credit control information for the alcohol industry, and promotes fair trade practices in accordance with the law. Also, this office provides online verification of licenses and permits and electronic funds transfer payment services.

The only legal source for a Maryland consumer to buy alcoholic beverages is from a licensed Maryland retailer. Licensed retailers in Maryland must also purchase their alcoholic beverage products from licensed wholesalers. Transporting or selling alcoholic beverages in Maryland without the proper license is illegal. It is also illegal for Maryland consumers to have alcoholic beverages sent to them by out-of-state suppliers through the mail or over the Internet. Consumers trying to obtain hard-to-find wines and other alcohol products can contact  Alcohol and Tobacco Tax at 410-260-7327 to learn about legal distribution alternatives.

Maryland residents can bring no more than two packs of untaxed cigarettes into Maryland, while nonresidents passing through are limited to one carton. Cigarettes that don’t bear the proper Maryland tax stamps may be seized as contraband, along with any vehicle used in transporting the untaxed cigarettes.

Motor Fuel Tax

The Motor Fuel Tax Office  is responsible for monitoring the distribution and use of motor fuels in Maryland. This office is also responsible for issuing decals and licenses to Maryland-based motor carriers that participate in the International Fuel Tax Agreement (IFTA). IFTA is an agreement among 48 states and 10 Canadian provinces to simplify the reporting of fuel used by interstate and inter-jurisdictional motor carriers. Commercial trucks and buses traveling interstate must file reports and pay taxes based upon the amount of fuel used by the vehicles on the highways. Also, this office ensures that untaxed home heating oil is not used in highway vehicles as diesel fuel.

The Motor Fuel Tax Office registers petroleum transporters, operating in and through Maryland. This is a mandatory requirement for persons transporting more than 1,749 gallons of motor fuel. Petroleum transporters include tanker trucks, trains, pipelines and waterborne vessels. Full accountability of all motor fuels is necessary for tax collection and quality control purposes. Additionally, registration is required by service stations and other facilities that sell or store motor fuels in bulk in order to regulate the quality of motor fuel sold in this State.