reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Tax - General › Title 10 - Income Tax › Subtitle 9 - Tax Payment › Part II - Payment of Tax Withheld › Section 10-905 - Definitions

(a)    In this Part II of this subtitle the following words have the meanings indicated.
(a–1)    “Annuity, sick pay, or retirement distribution” means:
(1)    an annuity or sick pay payment described in § 3402(o) of the Internal Revenue Code; or
(2)    a designated distribution as defined in § 3405(e) of the Internal Revenue Code other than an eligible rollover distribution within the meaning of § 3405(c) of the Internal Revenue Code.
(b)    (1)    “Employer” has the meaning stated in § 3401 of the Internal Revenue Code.
(2)    “Employer” includes:
(i)    the federal government;
(ii)    the State;
(iii)    a county, municipal corporation, political subdivision, or instrumentality of the State;
(iv)    another state to the extent that functions of its government are carried on or performed in this State; and
(v)    if the employer is a corporation:
1.    any officer of the corporation who exercises direct control over its fiscal management; and
2.    any agent of the corporation who has a duty to withhold income tax from wages.
(c)    “Payment subject to withholding” means:
(1)    an annuity, sick pay, or retirement distribution;
(2)    income that is subject to the income tax and is distributed by a fiduciary to a nonresident alien;
(3)    a payment of winnings derived from wagering in the State if the payment is subject to withholding under § 3402 of the Internal Revenue Code; and
(4)    a payment of a death benefit by the Board of Trustees of the State Retirement and Pension System.
(d)    (1)    “Payor” means a person responsible to make a payment subject to withholding.
(2)    “Payor” includes:
(i)    the federal government;
(ii)    the State;
(iii)    a county, municipal corporation, political subdivision, or instrumentality of the State;
(iv)    another state to the extent that functions of its government are carried on or performed in this State; and
(v)    if the payor is a corporation:
1.    any officer of the corporation who exercises direct control over its fiscal management; and
2.    any agent of the corporation who has a duty to withhold income tax from payments subject to withholding.
(e)    “Wagering” includes:
(1)    any lottery, including the State lottery; and
(2)    any pari–mutuel wagering, including any pari–mutuel wagering conducted under Title 11 of the Business Regulation Article.
(f)    (1)    Except as provided in paragraph (2) of this subsection, “wages” means salary, wages, or compensation for personal services of any kind as defined in §§ 3401 and 3402(o)(2)(A) of the Internal Revenue Code.
(2)    “Wages” includes remuneration paid for services described in § 3401(a)(5) and (6) of the Internal Revenue Code.
(g)    “Withhold” includes deducting income tax.
2023 Maryland Statutes › Tax - General › Title 10 - Income Tax › Subtitle 9 - Tax Payment › Part II - Payment of Tax Withheld › Section 10-906 - Tax to Be Withheld and Paid to Comptroller

(a)    Except as provided in § 10-907 of this subtitle, each employer or payor shall:
(1)    withhold the income tax required to be withheld under § 10-908 of this subtitle; and
(2)    pay to the Comptroller the income tax withheld for a period with the withholding return that covers the period.
(b)    Any income tax withheld is deemed to be held in trust for the State by the employer or payor who withholds the tax.
(c)    An employer or payor who withholds income tax shall keep a separate ledger account for withholdings that indicates clearly:
(1)    the amount of income tax withheld; and
(2)    that the income tax withheld is the property of the State.
(d)    If an employer or payor negligently fails to withhold or to pay income tax in accordance with subsection (a) of this section, personal liability for that income tax extends:
(1)    to the employer or payor;
(2)    if the employer or payor is a corporation, to:
(i)    any officer of the corporation who exercises direct control over its fiscal management; or
(ii)    any agent of the corporation who is required to withhold and pay the income tax; and
(3)    if the employer or payor is a limited liability company as defined under Title 4A of the Corporations and Associations Article or a limited liability partnership as defined under Title 9A of the Corporations and Associations Article, including a limited partnership registered as a limited liability limited partnership, to:
(i)    any person who exercises direct control over its fiscal management; and
(ii)    any agent of the limited liability company or limited liability partnership who is required to withhold and pay the income tax.
2023 Maryland Statutes › Tax - General › Title 10 - Income Tax › Subtitle 9 - Tax Payment › Part II - Payment of Tax Withheld › Section 10-907 - Exceptions

(a)    Income tax is not required to be withheld at the time wages are paid to a nonresident:
(1)    for State income tax withholding purposes, if the Comptroller and the state in which the nonresident resides have agreed in writing to allow a reciprocal exemption from tax and withholding for the wages of residents of each state that are earned in the other state;
(2)    for county income tax withholding purposes, if:
(i)    the nonresident derives wages from employment in a county; and
(ii)    the Comptroller determines that each locality in which the nonresident resides:
1.    imposes no tax on the income of a Maryland resident from wages from employment in that locality;
2.    exempts that income from its tax on income; or
3.    allows a credit for that income and exempts that income from the withholding requirement for its tax on income;
(3)    for tips, to the extent that the amount required to be withheld on the tips causes the total withholdings for the period to exceed the available net wages other than tips after deductions are made for:
(i)    the federal income and Social Security taxes and income tax required to be withheld on wages other than tips; and
(ii)    the federal income and Social Security taxes required to be withheld on the tips; or
(4)    if the wages are paid to an individual rendering police, fire, rescue, or emergency services in an area covered under a state of emergency declared by the Governor under § 14–107 of the Public Safety Article by:
(i)    a nonprofit organization not registered to do business in the State and not otherwise doing business in the State; or
(ii)    a state, county, or political subdivision of a state, other than the State of Maryland.
(b)    Unless the payee specifically asks that income tax be withheld from an annuity, sick pay, or retirement distribution, income tax is not required to be withheld from that payment.
(c)    Income tax is not required to be withheld on that portion of a death benefit to be excluded from federal adjusted gross income, including amounts to be transferred by the beneficiary or the Board of Trustees of the State Retirement and Pension System to an eligible retirement plan as defined in § 402(c)(8)(B) of the Internal Revenue Code in a nontaxable rollover. The State Retirement Agency is authorized to obtain such representation as it deems necessary to determine if the beneficiary will make a nontaxable rollover.
2023 Maryland Statutes › Tax - General › Title 10 - Income Tax › Subtitle 9 - Tax Payment › Part II - Payment of Tax Withheld › Section 10-908 - Amount to Be Withheld

(a)    An employer shall withhold from the wages of an individual the amount indicated in the income tax withholding tables or income tax percentage withholding schedules that the Comptroller prepares.
(b)    A payor that is a fiduciary shall withhold from each distribution the amount indicated in the income tax withholding tables or income tax percentage withholding schedules that the Comptroller prepares.
(c)    A payor shall withhold the amount from an annuity, sick pay, or retirement distribution that the payee requests.
(d)    A payor shall withhold from a payment subject to withholding of winnings derived from wagering:
(1)    if the payee is a resident, a rate equal to the sum of 3.0% and the top marginal State income tax rate for individuals under § 10-105(a) of this title, applied to the payment; and
(2)    if the payee is a nonresident, a rate equal to the sum of the rate of the tax imposed under § 10-106.1 of this title and the top marginal State income tax rate for individuals under § 10-105(a) of this title, applied to the payment.
(e)    The Board of Trustees of the State Retirement and Pension System shall withhold from a payment of a death benefit to a resident payee the sum of:
(1)    4.75% of the payment; and
(2)    the county income tax rate applied to the payment.
(f)    If a payment to a resident payee is a designated distribution that is an eligible rollover distribution within the meaning of § 3405(c) of the Internal Revenue Code and the payment is subject to mandatory withholding of federal income tax, the payor shall withhold from the payment an amount equal to 7.75% of the payment.
2023 Maryland Statutes › Tax - General › Title 10 - Income Tax › Subtitle 9 - Tax Payment › Part II - Payment of Tax Withheld › Section 10-909 - Withholding Periods

The income tax required to be withheld under § 10–908 of this subtitle shall be withheld:
(1)    by a payor other than a fiduciary or S corporation and by an employer:
(i)    on the basis of each weekly, 2–week, semimonthly, or monthly regular period of payment; or
(ii)    if there is no regular period of payment as specified in item (i) of this item, on a daily basis; and
(2)    by a payor who is a fiduciary, on a quarterly basis.
2023 Maryland Statutes › Tax - General › Title 10 - Income Tax › Subtitle 9 - Tax Payment › Part II - Payment of Tax Withheld › Section 10-910 - Exemption Certificate; Allowable Exemptions

(a)    At the time of employment, an employee shall sign and file with the employer an exemption certificate that states the number of exemptions to which the employee is entitled under this title.
(b)    (1)    Except as provided in paragraph (2) of this subsection, an employer shall base withholding for an employee:
(i)    on the number of exemptions stated in the exemption certificate that the employee files; or
(ii)    if the employee fails to file an exemption certificate or files an invalid certificate under subsection (c) of this section, on 1 exemption.
(2)    If the Comptroller notifies an employer that an employee has an unpaid tax liability, that the employee failed to file a required Maryland income tax return, or that an employee is subject to a tax refund interception request, the employer shall base withholding for the employee:
(i)    on a number of exemptions not exceeding the actual number of exemptions allowed on the employee’s prior year’s income tax return, as specified by the Comptroller; or
(ii)    if the employee failed to file a required Maryland income tax return, on 1 exemption.
(c)    (1)    An exemption certificate is invalid if it:
(i)    does not contain the information required; or
(ii)    contains false or fraudulent information.
(2)    An exemption certificate is not invalid if it states:
(i)    a number of exemptions that is less than the number of exemptions to which the individual is entitled under § 10–211 of this title; or
(ii)    a number of additional exemptions less than or equal to the fraction, rounded down to the nearest whole number:
1.    the numerator of which equals the excess of the total of estimated itemized deductions, alimony payments, allowable child care expenses, qualified retirement contributions, business losses, and employer business expenses over the standard deduction allowance; and
2.    the denominator of which equals the amount allowed for each exemption under § 10–211(b)(1) of this title for the applicable taxable year.
(d)    A person who is entitled to receive a payment subject to withholding of winnings derived from wagering shall complete, under oath, and give to the payor a withholding certificate that contains the name, address, state of residence, and taxpayer identification number of:
(1)    the person who is to receive the payment; and
(2)    each person entitled to any portion of the payment.
2023 Maryland Statutes › Tax - General › Title 10 - Income Tax › Subtitle 9 - Tax Payment › Part II - Payment of Tax Withheld › Section 10-911 - Annual Statement by Employer or Payor of Winnings From Wagering

(a)    Each employer or payor required under § 10–906 of this subtitle to withhold income tax for an employee or a person who receives a payment subject to withholding shall prepare a statement that shows for the previous calendar year:
(1)    the name of the employer or payor;
(2)    the name of the employee or person who receives the payment subject to withholding;
(3)    the total amount that the employer paid to the employee as wages or the total amount that the payor has paid to the person;
(4)    the total amount of tips that the employee reported;
(5)    the total amount of income tax that has been withheld under this subtitle;
(6)    any amount by which income tax required to be withheld on tips exceeds the other net wages paid to the employee; and
(7)    any other information that the Comptroller requires by regulation.
(b)    On or before January 31 of each year an employer or payor of a payment subject to withholding shall:
(1)    provide 2 copies of the statement required under subsection (a) of this section to the employee or person who receives a payment subject to withholding; and
(2)    submit 1 copy of the statement to the Comptroller.
(c)    (1)    Except as provided in paragraph (2) of this subsection, an employer or payor shall submit statements required under subsection (a) of this section in an electronic format that the Comptroller requires by regulation.
(2)    The Comptroller:
(i)    shall adopt regulations to provide a process for an employer or payor that is required to submit statements in an electronic format under paragraph (1) of this subsection to request a waiver from the requirement; and
(ii)    may waive the requirement that an employer or payor submit statements in an electronic format under paragraph (1) of this subsection if the Comptroller determines that the requirement will result in undue hardship to the employer or payor.
2023 Maryland Statutes › Tax - General › Title 10 - Income Tax › Subtitle 9 - Tax Payment › Part II - Payment of Tax Withheld › Section 10-913 - Earned Income Tax Credit

(a)    (1)    On or before January 1 of each calendar year, the Comptroller shall publish the maximum income eligibility for the earned income tax credit under § 10–704 of this title for the calendar year.
(2)    The Comptroller shall prepare a notice that meets the requirements of subsection (b) of this section and mail the notice to all employers in the State.
(b)    (1)    On or before December 31 of each calendar year, an employer shall provide electronic or written notice to an employee who may be eligible for the earned income tax credit under § 10–704 of this title that:
(i)    the employee may be eligible for the federal earned income tax credit under § 32 of the Internal Revenue Code; and
(ii)    the employee may be eligible for the earned income tax credit under § 10–704 of this title.
(2)    An employer may provide the notice required under this subsection to:
(i)    all employees; or
(ii)    employees with wages that are less than or equal to the maximum income eligibility published under subsection (a) of this section.
(c)    An employee may not pursue a private cause of action against an employer for the employer’s failure to provide the notice required under subsection (b) of this section.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 1 - Definitions; General Provisions › Section 11-102 - Imposition of Tax

(a)    Except as otherwise provided in this title, a tax is imposed on:
(1)    a retail sale in the State; and
(2)    a use, in the State, of tangible personal property, a digital code, a digital product, or a taxable service.
(b)    (1)    Subject to paragraph (2) of this subsection, in addition to the tax imposed under subsection (a) of this section, a hotel surcharge is imposed in Dorchester County on the sale of a right to occupy a room or lodgings as a transient guest in an establishment that offers at least 380 rooms.
(2)    The hotel surcharge imposed under paragraph (1) of this subsection may not be imposed if the Maryland Economic Development Corporation certifies to the Comptroller that the bonds issued by the Maryland Economic Development Corporation secured by the Dorchester County Economic Development Fund established under § 10–130 of the Economic Development Article have been paid in full.
(c)    (1)    A county, municipal corporation, special taxing district, or other political subdivision of the State may not impose any retail sales or use tax except:
(i)    a sales tax or use tax that was in effect on January 1, 1971;
(ii)    a tax on the sale or use of:
1.    fuels;
2.    utilities;
3.    space rentals; or
4.    any controlled dangerous substance, as defined in § 5–101 of the Criminal Law Article, unless the sale is made by a person who registers under and complies with Title 5, Subtitle 3 of the Criminal Law Article; or
(iii)    a tax imposed by a code county on the sale or use of food and beverages authorized under § 20–602 of the Local Government Article.
(2)    Paragraph (1) of this subsection may not be construed as conferring authority to impose a sales and use tax.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 1 - Definitions; General Provisions › Section 11-103 - Presumption of Taxability

(a)    A rebuttable presumption exists that any sale in the State is subject to the sales and use tax imposed under § 11–102(a)(1) of this subtitle.
(b)    The person required to pay the sales and use tax has the burden of proving that a sale in the State is not subject to the sales and use tax.
(c)    The retail sale of a digital code or digital product shall be presumed to be made in the state in which the customer tax address is located.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 1 - Definitions; General Provisions › Section 11-108 - Prepaid Telephone Service

The sale or recharge of a prepaid telephone calling arrangement is taxable in the State if:
(1)    the sale or recharge takes place at the vendor’s place of business located in the State;
(2)    the buyer’s shipping address is in the State; or
(3)    there is no item shipped, but the buyer’s billing address or the location associated with the buyer’s mobile telephone number is in the State.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 1 - Definitions; General Provisions › Section 11-109 - List of Tangible Personal Property and Services

(a)    The Comptroller shall publish on the Comptroller’s website, as a general guide for vendors, a comprehensive list of tangible personal property and services the sale or use of which are subject to the sales and use tax.
(b)    The Comptroller shall update the list published in accordance with subsection (a) of this section at least quarterly and detail any additions, deletions, or revisions to the list.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 1A - Special Use Tax on Certain Electricity › Section 11-1A-01 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    (1)    “On-site generated electricity” means electricity that is generated at a facility:
(i)    the owner of which is an electric consumer that, together with any tenants of the owner, consumes at least 80% of the electricity generated by the facility each year; and
(ii)    that is operated by the owner or a designee of the owner.
(2)    “On-site generated electricity” does not include electricity generated at a facility that is owned by more than one person or governmental entity unless the ownership of the facility and the ownership of the building or machinery and equipment that consumes the electricity is substantially the same, as determined under regulations that the Comptroller adopts.
(c)    “Owner” means the person or governmental entity that has a capital investment in a facility and that for federal income tax purposes is entitled to deduct depreciation on the facility or would be entitled to the deduction if subject to the federal income tax.
(d)    “Public service company” has the meaning stated in § 8-401 of this article.
(e)    “Special use tax on electricity” means the tax imposed under this subtitle.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 1A - Special Use Tax on Certain Electricity › Section 11-1A-02 - Qualifying Use

(a)    In addition to any tax imposed under § 11-102 of this title, except as provided in subsection (b) of this section, a tax is imposed on the use, in the State, of electricity that is not delivered by a public service company.
(b)    The special use tax on electricity does not apply to the use of:
(1)    electricity that is:
(i)    used for residential purposes; or
(ii)    used exclusively for emergency back-up generation; or
(2)    on-site generated electricity.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 1A - Special Use Tax on Certain Electricity › Section 11-1A-05 - Reporting Requirements

In addition to any information required under Subtitle 5 of this title:
(1)    the return of a vendor who makes a sale for use of electricity that is subject to the special use tax on electricity shall state for the period that the return covers:
(i)    the kilowatt hours of electricity the use of which became subject to the special use tax on electricity; and
(ii)    the special use tax on electricity that is due; and
(2)    the return of a person who uses electricity that is subject to the special use tax on electricity and fails to pay the tax to the vendor shall state for the period that the return covers:
(i)    the kilowatt hours of electricity that is subject to the special use tax on electricity; and
(ii)    the special use tax on electricity that is due.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-201 - Agricultural Purposes and Products

(a)    The sales and use tax does not apply to a sale of the following items for an agricultural purpose:
(1)    livestock;
(2)    feed or bedding for livestock;
(3)    seed, fertilizer, fungicide, herbicide, or insecticide;
(4)    baler twine or wire;
(5)    fuel for use in farm equipment or a farm tractor, as defined in §§ 11–120 and 11–121 of the Transportation Article; and
(6)    if bought by a farmer:
(i)    a container to transport farm products that the farmer raises to market;
(ii)    a farm vehicle, as defined in § 13–911(c) of the Transportation Article, when used in farming;
(iii)    a milking machine, when used in farming;
(iv)    fabrication, processing, or service, by a sawmill, of wood products for farm use in which the farmer retains title; and
(v)    farm equipment when used to:
1.    raise livestock;
2.    prepare, irrigate, or tend the soil; or
3.    plant, service, harvest, store, clean, dry, or transport seeds or crops.
(b)    Except for flowers, sod, decorative trees and shrubs, and any other product that usually is sold by a nursery or horticulturist, the sales and use tax does not apply to a sale of an agricultural product by a farmer.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-201.1 - Sale of Tangible Personal Property Through Bulk Vending Machine

(a)    In this section, “bulk vending machine” means a vending machine that:
(1)    contains unsorted merchandise; and
(2)    on insertion of a coin, dispenses the unsorted merchandise in approximately equal portions at random and without selection by the customer.
(b)    The sales and use tax does not apply to a sale of tangible personal property through a bulk vending machine for a taxable price of 75 cents or less.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-205 - Flags

The sales and use tax does not apply to a sale of:
(1)    a Maryland State flag;
(2)    a United States flag; or
(3)    a prisoner of war flag or missing in action flag honoring and remembering military personnel who have served in the armed forces of the United States.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-207 - Fuel

(a)    The sales and use tax does not apply to:
(1)    a sale of electricity, steam, or artificial or natural gas for use in residential condominiums;
(2)    a sale of electricity, steam, or artificial or natural gas that is delivered under a residential or domestic rate schedule on file with the Public Service Commission;
(3)    a sale of coal, firewood, heating oil, or propane gas or similar liquefied gas for use in residential property that contains not more than 4 units, cooperative housing, condominiums, or other similar residential living arrangements;
(4)    a sale of electricity through 3 or more bulk meters for use in a nonprofit planned retirement community of more than 2,000 housing cooperative or condominium units if:
(i)    ownership of units is restricted by age;
(ii)    any unit is served by an individual meter; and
(iii)    on or before July 1, 1979, at least 3 bulk meters served the community; or
(5)    a sale of electricity generated by solar energy equipment or residential wind energy equipment, as defined under § 11–230 of this subtitle, for use in residential property owned by an eligible customer–generator under § 7–306 of the Public Utilities Article.
(b)    The sales and use tax does not apply to a sale of wood, wood bark or residue, or refuse-derived fuel used for heating purposes.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-208 - Interstate or Foreign Commerce or Use in Another State

(a)    The sales and use tax does not apply to:
(1)    a sale of equipment or machinery that is used only to load, unload, and handle cargo of ocean going vessels within an international marine terminal; or
(2)    a rental of equipment or machinery that:
(i)    is owned by the Maryland Port Administration; and
(ii)    is used only to load and unload ocean going vessels.
(b)    The sales and use tax does not apply to a sale of film, video tape, or a digital product for use only in television broadcasting by a television station that the Federal Communications Commission licenses specifically to broadcast to a city or town outside the State.
(c)    The sales and use tax does not apply:
(1)    to a sale of an aircraft, motor vehicle, railroad rolling stock, or vessel that is used principally to cross State lines in interstate or foreign commerce;
(2)    to a sale of a replacement part, other tangible personal property, or a digital product to be used physically in, on, or by a conveyance described in item (1) of this subsection; or
(3)    except for a rental, to a sale of a motor vehicle, other than a house or office trailer, that will be titled or registered in another state.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-209 - Casual and Isolated Sale; Distribution or Transfer of Tangible Personal Property

(a)    The sales and use tax does not apply to a casual and isolated sale by a person who regularly does not sell tangible personal property, a digital code, a digital product, or a taxable service if:
(1)    the sale price is less than $1,000; and
(2)    the sale is not made through an auctioneer or a dealer.
(b)    The sales and use tax does not apply to a distribution of tangible personal property, a digital code, or a digital product by:
(1)    a corporation or joint–stock company to its stockholders as a liquidating distribution;
(2)    a partnership to a partner; or
(3)    a limited liability company to a member.
(c)    (1)    The sales and use tax does not apply to a transfer of tangible personal property, a digital code, or a digital product:
(i)    under a reorganization within the meaning of § 368(a) of the Internal Revenue Code;
(ii)    on organization of a corporation or joint–stock company, to the corporation or company principally in consideration for the issuance of its stock;
(iii)    to a partnership only as a contribution to its capital or in consideration for a partnership interest in the partnership; or
(iv)    to a limited liability company only as a capital contribution or in consideration for an interest in the limited liability company.
(2)    For a transfer that would qualify as a casual and isolated sale under subsection (a) of this section if the sale price limitation were disregarded, the amount of liability transferred to or assumed by a corporation, joint–stock company, partnership, or limited liability company shall be excluded from the consideration transferred by the corporation, joint–stock company, partnership, or limited liability company in exchange for the tangible personal property, digital code, or digital product to determine whether the transfer is made:
(i)    principally in consideration for the issuance of stock of a corporation or joint–stock company;
(ii)    only as a contribution to the capital of a partnership or in consideration for a partnership interest; or
(iii)    only as a capital contribution to a limited liability company or in consideration for an interest in a limited liability company.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-210 - Machinery and Equipment

(a)    The sales and use tax does not apply to a sale of:
(1)    machinery or equipment used to produce bituminous concrete; or
(2)    electricity, fuel, and other utilities used to operate that machinery or equipment.
(b)    The sales and use tax does not apply to a sale of:
(1)    tangible personal property, a digital code, or a digital product used directly and predominantly in a production activity at any stage of operation on the production activity site from the handling of raw material or components to the movement of the finished product, if the tangible personal property, digital code, or digital product is not installed so that it becomes real property;
(2)    a melting, smelting, heating, or annealing coke oven, aluminum furnace, anode bake oven, electrolytic pot, cathode, refractory, or other material used in relining and rebuilding a furnace or oven; or
(3)    a foundation to support other machinery or equipment or an item required to conform to an air or water pollution law and normally considered part of real property.
(c)    The sales and use tax does not apply to a sale of equipment that is used by a retail food vendor to manufacture or process bread or bakery goods for resale if:
(1)    the taxable price of each piece of equipment is at least $2,000; and
(2)    the retail food vendor operates a substantial grocery or market business, as defined in § 11–206(a) of this subtitle, at the same location where the food is sold.
(d)    The sales and use tax does not apply to the sale, on or after January 1, 2000, but before January 1, 2008, of machinery or equipment:
(1)    that enables a television or radio station to originate and broadcast or to receive and broadcast digital signals; and
(2)    that was or is purchased to comply with or to facilitate compliance with the Telecommunications Act of 1996, Pub. L. 104–104, 110 Stat. 56.
(e)    The sales and use tax does not apply to the sale of:
(1)    machinery or equipment used directly and predominantly to produce Energy Star windows or Energy Star entry doors for residential real property; or
(2)    electricity, fuel, and other utilities used to operate that machinery or equipment.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-212 - Mining Purpose

The sales and use tax does not apply to a sale of:
(1)    fabrication, processing, or service, by a sawmill, of wood products for mine use in which the miner retains title; or
(2)    diesel fuel for use in reclamation of land that has been mined for coal by strip or open-pit mining.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-214 - Nonresident Property

The sales and use tax does not apply to use of tangible personal property, a digital code, a digital product, or a taxable service that:
(1)    a nonresident:
(i)    acquires before the property, digital code, digital product, or service enters the State; and
(ii)    uses:
1.    for personal enjoyment or use or for a use that the Comptroller specifies by regulation, other than for a business purpose; or
2.    in a presentation or in conjunction with a presentation of an exhibit, show, sporting event, or other public performance or display; and
(2)    does not remain in the State for more than 30 days.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-214.1 - Precious Metal Bullion and Coins

(a)    In this section:
(1)    “precious metal bullion or coins” means:
(i)    any precious metal that has gone through a refining process and is in a state or condition such that its value depends on its precious metal content and not on its form; or
(ii)    except as provided in paragraph (2) of this subsection, monetized bullion, coins, or other forms of money that:
1.    are manufactured from precious metals; and
2.    are or have in the past been used as a medium of exchange under the laws of the State, the United States, or a foreign nation; and
(2)    “precious metal bullion or coins” does not include jewelry or a work of art made of precious metal bullion or coins.
(b)    The sales and use tax does not apply to a sale of precious metal bullion or coins if the sale price is greater than $1,000.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-215 - Printing Use and Publications

(a)    The sales and use tax does not apply to a sale of photographic material for use in the production of an item that is used in:
(1)    composition or printing; or
(2)    production of another item used in printing.
(b)    (1)    The sales and use tax does not apply to a sale of art works, electros, electrotypes, hand or machine compositions, lithographic plates or negatives, mats, photoengravings, stereotypes, or typographies:
(i)    to a person engaged in the printing of tangible personal property for sale; and
(ii)    for direct use by the person to produce that property for sale.
(2)    A vendor who sells any item under paragraph (1) of this subsection is not entitled to any exclusion under § 11-101(h)(3)(ii) or (n)(3)(ii) of this title for material that the vendor buys to produce that item.
(c)    (1)    The sales and use tax does not apply to the printing and sale of newspapers that are distributed by the publisher at no charge.
(2)    A publication is not a newspaper unless it is published and distributed at least once per month and it meets other criteria as defined by the Comptroller.
(d)    The sales and use tax does not apply to:
(1)    a sale of direct mail advertising literature and mail order catalogues that will be distributed outside the State, and a sale of computerized mailing lists to the extent used for the purpose of providing addresses to which direct mail advertising literature and mail order catalogues will be distributed outside the State; or
(2)    a sale of government documents, publications, records, or copies by the federal or State or a local government or an instrumentality of the federal or State or a local government.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-216 - Property for Use in Another State

(a)    The sales and use tax does not apply to:
(1)    a sale for use of tangible personal property, a digital code, or a digital product that:
(i)    is bought outside this State;
(ii)    is intended solely for use in another state; and
(iii)    is stored in this State pending shipment to another state;
(2)    a sale of tangible personal property to a person obligated under a contract to incorporate that property into real property located in another state where the purchase or use of that property would not be subject to a sales tax, use tax, or similar tax; or
(3)    except for that portion of the purchase price allocable to intended viewing in this State, a sale of a series of images stored on video tape or in other optical or digital forms or electronic signals generated from these images to a cable or other nonbroadcast television network, if the images are intended for viewing by television viewers located outside the State.
(b)    The sales and use tax shall be paid:
(1)    on a sale under subsection (a)(1) of this section, when the tangible personal property is imported or stored in the State; and
(2)    on a sale under subsection (a)(2) of this section, when the sale is made.
(c)    A person who pays the sales and use tax under subsection (b) of this section may obtain the exemption by:
(1)    filing a claim for refund with the Comptroller when the property is removed from the State; and
(2)    providing the Comptroller with the evidence that the Comptroller requires by regulation, including:
(i)    evidence of use or removal of the property from the State; and
(ii)    satisfactory proof of entitlement to exemption in another state.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-217 - Research and Development Purpose

(a)    (1)    In this section, “research and development” means:
(i)    basic and applied research in the sciences and engineering; and
(ii)    the design, development, and governmentally required pre-market testing of prototypes, products, and processes.
(2)    “Research and development” does not include:
(i)    market research;
(ii)    research in the social sciences or psychology and other nontechnical activities;
(iii)    routine product testing;
(iv)    sales services; or
(v)    technical and nontechnical services.
(b)    The sales and use tax does not apply to a sale of tangible personal property, a digital code, or a digital product for use or consumption in research and development.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-218 - Seafood Harvesting Purposes

The sales and use tax does not apply to a sale of:
(1)    a clam or oyster rake, crab bait, crab or eel pot, or fish net;
(2)    a dredge, handscrape, or hand or patent tong; or
(3)    fuel or a repair part for a commercial fishing vessel or for a vessel otherwise used for commercial purposes.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-219 - Services

(a)    The sales and use tax does not apply to a personal, professional, or insurance service that:
(1)    is not a taxable service; and
(2)    involves a sale as an inconsequential element for which no separate charge is made.
(b)    The sales and use tax does not apply to a sale of custom computer software, regardless of the method transferred or accessed, or a service relating to custom computer software that:
(1)    would otherwise be taxable under this title;
(2)    is to be used by a specific person;
(3)    (i)    is created for that person; or
(ii)    contains standard or proprietary routines requiring significant creative input to customize, configure, or modify the procedures and programs that are necessary to perform the functions required for the software to operate as intended; and
(4)    do not constitute a program, procedure, or documentation that is mass produced and sold to:
(i)    the general public; or
(ii)    persons engaged in a trade, profession, or industry, except as provided in item (3) of this subsection.
(c)    The sales and use tax does not apply to the sale of an optional computer software maintenance contract if the buyer does not have a right, as part of the contract, to receive at no additional cost software products that are separately priced and marketed by the vendor.
(d)    The sales and use tax does not apply to the use of a taxable service obtained by using a prepaid telephone calling arrangement.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-220 - State or Political Subdivision

(a)    The sales and use tax does not apply to a sale to the State or a political subdivision of the State.
(b)    The exemption under subsection (a) of this section may not be construed to exempt any sale of tangible personal property, a digital code, or a digital product, otherwise taxable under this title, to a contractor to be used under a contract with the State or a political subdivision of the State for construction, repair, or alteration of real property.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-221 - Taxation by Other Law

(a)    The sales and use tax does not apply to:
(1)    a sale of an admission by a person whose gross receipts from the sale are subject to the admissions and amusement tax;
(2)    a sale of a communication service, other than a taxable service, rendered by a person whose charge for a communication service is or would be subject to the federal excise tax as described in § 4251 of the Internal Revenue Code in effect on July 1, 1979;
(3)    a sale of a motor fuel that is subject to the motor fuel tax or the motor carrier tax;
(4)    except for a rental, a sale of a motor vehicle, other than a house or office trailer, that is subject to the motor vehicle excise tax under § 13-809 or § 13-811 of the Transportation Article;
(5)    a lease of a motor vehicle that is leased for a period of at least 1 year;
(6)    a rental of a motion picture, motion picture trailer, or advertising poster for display on theater premises by a person whose gross receipts from the activity related to the rental is subject to the admissions and amusement tax; or
(7)    except for a rental, a sale of a vessel that is subject to the excise tax under § 8-716 of the Natural Resources Article.
(b)    If a person who buys tangible personal property, a digital code, a digital product, or a taxable service in a retail sale pays the sales and use tax when the retail sale is made, the person is not required to pay the tax again when the person uses that tangible personal property, digital code, digital product, or taxable service in the State.
(c)    (1)    To the extent that a buyer pays another state a tax on a sale or gross receipts from a sale of tangible personal property, a digital code, a digital product, or a taxable service that the buyer acquires before the property, digital code, digital product, or service enters this State, the sales and use tax does not apply to use of the property or service in this State.
(2)    If the tax paid to another state is less than the sales and use tax, the buyer shall pay the difference between the sales and use tax and the amount paid to the other state in accordance with the formula under § 11–303(b) of this title.
(d)    A retail sale of a digital product subject to tax under this title does not include a retail sale that is subject to tax in accordance with any other provision of this article.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-222 - Testing Equipment

The sales and use tax does not apply to a sale of deliverable end item testing equipment that is used to perform a contract for the United States Department of Defense and that, under the terms of the contract, is to be transferred to the federal government, if the contract is awarded as a result of a bid submitted after June 1, 1986.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-223 - Transportation Services

The sales and use tax does not apply to a sale of:
(1)    a bus to a person who uses the bus only:
(i)    in the operation of the transportation system of a political subdivision of the State; and
(ii)    for public transportation on regular schedules and between fixed termini, as defined in Title 11 of the Transportation Article; or
(2)    a transportation service.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-225 - Computer Programs

(a)    In this section, “computer program” means a set of statements or instructions to be used directly or indirectly in a computer in order to bring about a certain result.
(b)    The sales and use tax does not apply to a sale of a computer program that is legally permitted to be and is intended to be:
(1)    reproduced for sale; or
(2)    incorporated in whole or in part into another computer program intended for sale.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-226 - Appliances Meeting Certain Efficiency Requirements

(a)    (1)    In this subsection, “Energy Star product” means an air conditioner, clothes washer or dryer, furnace, heat pump, standard size refrigerator, compact fluorescent light bulb, dehumidifier, boiler, or programmable thermostat that has been designated as meeting or exceeding the applicable Energy Star efficiency requirements developed by the United States Environmental Protection Agency and the United States Department of Energy.
(2)    Beginning in calendar year 2011, the weekend that consists of the Saturday immediately preceding the third Monday in February through the third Monday in February each year shall be a tax–free weekend during which the exemption under paragraph (3) of this subsection shall apply.
(3)    During the tax–free weekend established under paragraph (2) of this subsection, the sales and use tax does not apply to the sale of any:
(i)    Energy Star product; or
(ii)    solar water heater.
(b)    The sales and use tax does not apply to the sale of a multifuel pellet stove designed to burn agricultural field corn.
2023 Maryland Statutes › Tax - General › Title 11 - Sales and Use Tax › Subtitle 2 - Exemptions › Section 11-227 - Property or Service Used Directly in Film Production Activity

(a)    (1)    In this section the following words have the meanings indicated.
(2)    (i)    “Film production activity” means the production or postproduction of film or video projects including feature films, television projects, commercials, corporate films, infomercials, music videos, or other projects for which the producer or production company will be compensated, and which are intended for nationwide commercial distribution.
(ii)    “Film production activity” includes the production or postproduction of digital, animation, and multimedia projects.
(iii)    “Film production activity” does not include:
1.    production or postproduction of student films or noncommercial personal videos; or
2.    any activity not necessary to and undertaken directly and exclusively for the making of a master film, tape, or image.
(3)    “Tangible personal property, a digital code, a digital product, or a taxable service used directly in connection with a film production activity” includes:
(i)    camera equipment and supplies;
(ii)    film and tape;
(iii)    lighting and stage equipment and supplies;
(iv)    sound equipment and supplies;
(v)    recording equipment and supplies;
(vi)    costumes, wardrobes, and materials to construct them;
(vii)    props, scenery, and materials to construct them;
(viii)    design supplies and equipment;
(ix)    drafting supplies and equipment;
(x)    special effects supplies and equipment;
(xi)    short–term vehicle rentals; and
(xii)    fabrication, printing, or production of scripts, storyboards, costumes, wardrobes, props, scenery, or special effects.
(b)    The sales and use tax does not apply to a sale of tangible personal property, a digital code, a digital product, or a taxable service used directly in connection with a film production activity by a film producer or production company certified by the Department of Commerce under Title 6, Subtitle 2 of the Economic Development Article.