Tax - General (GTG) — Title 11. Sales and Use Tax

“Accommodations intermediary” means a person, other than an accommodations provider, who facilitates the sale or use of an accommodation and charges a buyer the taxable price for the accommodation.

For purposes of this subsection, a person shall be considered to facilitate the sale or use of an accommodation if the person brokers, coordinates, or in any other way arranges for the sale or use of an accommodation by a buyer.

acquires tangible personal property in a sale;

obtains a taxable service in a sale; or

acquires a digital code or digital product in a sale.

floor, carpet, wall, window, ceiling, and exterior cleaning; and

janitorial services.

for a digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section that is received by a buyer at the business location of the vendor, the address of that business location;

if item (1) of this subsection is not applicable and the primary use location of the digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section is known by the vendor, that primary use location;

if items (1) and (2) of this subsection are not applicable, the location where the digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section is received by the buyer, or by a donee of the buyer that is identified by the buyer, if known to the vendor and maintained in the ordinary course of the vendor’s business;

if items (1) through (3) of this subsection are not applicable, the location indicated by an address for the buyer that is available from the business records of the vendor that are maintained in the ordinary course of business of the vendor’s business, when use of the address does not constitute bad faith;

if items (1) through (4) of this subsection are not applicable, the location indicated by an address for the buyer obtained during the consummation of the sale, including the address of the buyer’s payment instrument, when use of the address does not constitute bad faith; or

if items (1) through (5) of this subsection are not applicable, including a circumstance in which a vendor is without sufficient information to apply those items, one of the following locations, as selected by the vendor, provided that the location is consistently used by the vendor for all sales to which this item applies:

“Digital code” means a number, symbol, alphanumeric sequence, barcode, or similar code that:

“Digital code” does not include a gift certificate or gift card with a monetary value that may be redeemable for an item other than a digital product.

“Digital product” means a product that is obtained electronically by the buyer or delivered by means other than tangible storage media through the use of technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

“Digital product” includes:

“Digital product” does not include:

“End user” means any person who receives or accesses a digital code, digital product code, or taxable service described under subsection (m)(14) or (15) of this section for use.

“End user” does not include any person who receives a digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section for further commercial broadcast, rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution, or exhibition of the digital product.

“Home amenity rental intermediary” means a person, other than a home amenity rental provider, who facilitates the sale or use of a home amenity and charges a buyer the taxable price for the home amenity rental.

For purposes of this subsection, a person shall be considered to facilitate the sale or use of a home amenity if the person brokers, coordinates, or in any other way arranges for the sale or use of a home amenity by a buyer.

advertises the availability of home amenities; and

receives compensation for facilitating reservations or processing booking transactions on behalf of the owner, operator, or manager of a home amenity.

“Marketplace facilitator” means a person that:

“Marketplace facilitator” does not include:

this State or a political subdivision, unit, or instrumentality of this State;

another state or a political subdivision, unit, or instrumentality of that state; and

a unit or instrumentality of a political subdivision of this State or of another state.

“Primary use location” means the street address representative of where the buyer’s use of a digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section will primarily occur, as determined by:

“Primary use location” does not include the location of a person who is not any end user or who uses a digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section as the purchaser of a separate good or service from the buyer.

“Production activity” means:

“Production activity” does not include:

“Retail sale” means the sale of:

“Retail sale” includes:

“Retail sale” does not include:

“Sale” means a transaction for a consideration whereby:

“Sale” does not include a transaction whereby an employee performs a service for the employee’s employer.

advertises the availability of short–term rental units for rent; and

receives compensation for facilitating reservations or processing booking transactions on behalf of the owner, operator, or manager of a short–term rental unit.

“Short–term rental unit” means a residential dwelling unit or a portion of the unit used for short–term rentals.

“Short–term rental unit” includes a single–family house or dwelling, a multifamily house or dwelling, an apartment, a condominium, or a cooperative.

“Tangible personal property” means:

“Tangible personal property” includes:

“Taxable price” means the value, in money, of the consideration of any kind that is paid, delivered, payable, or deliverable by a buyer to a vendor in the consummation and complete performance of a sale without deduction for any expense or cost, including the cost of:

“Taxable price” includes, for tangible personal property, a digital code, or a digital product acquired by a sale for use in the State by the person who assembles, fabricates, or manufactures the property or digital product, only the price of the raw materials and component parts contained in the property or digital product.

“Taxable price” does not include:

“Taxable price” includes all sales and charges, including insurance, freight handling, equipment and supplies, delivery and pickup, cellular telephone, and other accessories, but not including sales of motor fuel subject to the motor fuel tax, made in connection with:

“Taxable price” includes:

“Taxable price” does not include:

fabrication, printing, or production of tangible personal property or a digital product by special order;

commercial cleaning or laundering of textiles for a buyer who is engaged in a business that requires the recurring service of commercial cleaning or laundering of the textiles;

cleaning of a commercial or industrial building;

cellular telephone or other mobile telecommunications service;

“900”, “976”, “915”, and other “900”–type telecommunications service;

custom calling service provided in connection with basic telephone service;

a telephone answering service;

pay per view television service;

credit reporting;

a security service, including:

a transportation service for transmission, distribution, or delivery of electricity or natural gas, if the sale or use of the electricity or natural gas is subject to the sales and use tax;

a prepaid telephone calling arrangement;

the privilege given to an individual under § 4–1102 of the Alcoholic Beverages and Cannabis Article to consume wine that is not purchased from or provided by a restaurant, club, or hotel;

a data or information technology service described under NAICS Sector 518, 519, or 5415; or

a system software or application software publishing service described under NAICS Sector 5132.

“Telephone answering service” means a service provided to a customer that consists exclusively of the taking of messages, either by an automated system or by a live operator, and transmitting the messages to the customer.

“Telephone answering service” does not include the physical act of answering a telephone on behalf of a customer, if the act is incidental to and less than 5% of the service provider’s total gross receipts in a calendar year.

“Use” means an exercise of a right or power to use, consume, possess, or store that is acquired by a sale for use of:

“Use” includes an exercise of a right or power to use, consume, possess, or store that is acquired by a sale for use of tangible personal property, a digital code, or a digital product:

“Use” does not include:

“Vendor” means a person who:

“Vendor” includes, for an out–of–state vendor, a salesman, representative, peddler, or canvasser whom the Comptroller, for the efficient administration of this title, elects to treat as an agent jointly responsible with the dealer, distributor, employer, or supervisor:

a retail sale in the State; and

a use, in the State, of tangible personal property, a digital code, a digital product, or a taxable service.

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.

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.

A county, municipal corporation, special taxing district, or other political subdivision of the State may not impose any retail sales or use tax except:

Paragraph (1) of this subsection may not be construed as conferring authority to impose a sales and use tax.

for a taxable price of less than $1:

for a taxable price of $1 or more:

In this subsection:

The sales and use tax rate for a short–term vehicle rental for a taxable price of $2 or more is:

except as provided in item (2) of this subsection, 8% of the taxable price; and

In this subsection, “modular building” includes single–family or multifamily houses, apartment units, or commercial buildings, and permanent additions to single–family or multifamily houses, apartment units, or commercial buildings, comprised of one or more sections that are:

The sales and use tax rate for the sale of a modular building is the rate imposed under subsection (a) of this section applied to 60% of the taxable price.

9% of the charge for the alcoholic beverage; and

6% of a charge that is made in connection with the sale of an alcoholic beverage and is stated as a separate item of the consideration and made known to the buyer at the time of sale for:

If a retail sale of dyed diesel fuel is made by a marina, the sales and use tax rate is 6%, applied to 94.5% of the gross receipts from the dyed diesel fuel sales.

Except as provided in paragraph (3) of this subsection, the sales and use tax rate is 20% of the taxable price for electronic smoking devices.

The sales and use tax for vaping liquid sold in a container that contains 5 milliliters or less of vaping liquid is 60% of the taxable price.

The sales and use tax for tobacco pipes is 12% of the taxable price.

for fiscal years 2024 through 2025, 9%; and

for fiscal year 2026 and each fiscal year thereafter, 12%.

The sales and use tax for a sale of a taxable service described under § 11–101(m)(14) and (15) of this subtitle is 3% of the taxable price.

If a different rate from the rate specified under paragraph (1) of this subsection could be applied to a sale or use of tangible personal property, a digital code, a digital product, or a taxable service, the higher rate shall apply to the sale.

Except as provided in subsections (b), (c), and (d) of this section, a vendor who timely files a sales and use tax return is allowed, for the expense of collecting and paying the tax, a credit equal to 0.9% of the gross amount of sales and use tax that the vendor is to pay to the Comptroller.

The credit allowed under this section does not apply to any sales and use tax that a vendor is required to pay to the Comptroller for any purchase or use that the vendor makes that is subject to the tax.

Subject to paragraph (2) of this subsection, the credit allowed under this section is 1.2% of the first $6,000 of the gross amount of sales and use tax that the vendor is to pay with each return.

For a vendor who files or is eligible to file a consolidated return under § 11–502 of this title, the credit allowed under paragraph (1) of this subsection is 1.2% of the first $6,000 of the gross amount of sales and use tax that the vendor is or would be required to pay with the consolidated return.

The credit allowed under subsection (a) of this section may not exceed $500 for each return.

For a vendor who files or is eligible to file a consolidated return under § 11–502 of this title, the total maximum credit that the vendor is allowed under this section for all returns filed for any period is $500.

On or before January 31 each year, a vendor who claims a credit under this subsection shall submit to the Secretary a report that includes, for the previous calendar year:

The Comptroller shall adopt regulations to implement this subsection.

Subject to the provisions of this subsection, the State of Maryland hereby adopts the Streamlined Sales and Use Tax Agreement as adopted by the member states of the Streamlined Sales and Use Tax Project on November 12, 2002.

The adoption of the Agreement by the State of Maryland as provided in this section is contingent on the enactment of legislation by the U.S. Congress consenting to the Agreement and authorizing states that are parties to the Agreement to require remote sellers to collect and remit the sales and use taxes of those states.

Within 90 days after the enactment of legislation by the U.S. Congress consenting to the Agreement and authorizing states that are parties to the Agreement to require remote sellers to collect and remit the sales and use taxes of those states, the Comptroller shall prepare and submit to the Governor and, subject to § 2-1257 of the State Government Article, the Senate Budget and Taxation Committee and the House Committee on Ways and Means proposed regulations and draft legislation that:

no provision of the Agreement in whole or in part invalidates or amends any provision of the law of this State;

adoption of the Agreement does not amend or modify any other provision of this title or other law of this State; and

implementation of any condition of the Agreement in this State, whether adopted before, at, or after adoption of the Agreement by this State, must be by the action of this State.

No law of this State, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the Agreement.

“On-site generated electricity” means electricity that is generated at a facility:

“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.

electricity that is:

on-site generated electricity.

the kilowatt hours of electricity the use of which became subject to the special use tax on electricity; and

the special use tax on electricity that is due; and

the kilowatt hours of electricity that is subject to the special use tax on electricity; and

the special use tax on electricity that is due.

livestock;

feed or bedding for livestock;

seed, fertilizer, fungicide, herbicide, or insecticide;

baler twine or wire;

fuel for use in farm equipment or a farm tractor, as defined in §§ 11–120 and 11–121 of the Transportation Article; and

if bought by a farmer:

contains unsorted merchandise; and

on insertion of a coin, dispenses the unsorted merchandise in approximately equal portions at random and without selection by the customer.

a sale to a cemetery company, as described in § 501(c)(13) of the Internal Revenue Code in effect on July 1, 1987;

a sale to a credit union organized under the laws of the State or of the United States;

a sale to a nonprofit organization made to carry on its work, if the organization:

a sale, not exceeding $500, to a nonprofit incorporated senior citizens’ organization made to carry on its work, if the organization:

a sale to a volunteer fire company or department or volunteer ambulance company or rescue squad located in the State made to carry on the work of the company, department, or squad;

a sale of tangible personal property, a digital code, or a digital product to a nonprofit parent–teacher association located in the State if the association makes the purchase to contribute the property to a school to which a sale is exempt under item (3) of this subsection or § 11–220 of this subtitle;

a sale to a nonprofit organization made to carry on its work, if the organization:

a sale to a bona fide nationally organized and recognized organization of veterans or an auxiliary of the organization or one of its units, if the organization is qualified as tax exempt under § 501(c)(4) or § 501(c)(19) of the Internal Revenue Code.

a bona fide church or religious organization, if the sale is made for the general purposes of the church or organization;

a gift shop at a mental hospital that the Maryland Department of Health operates;

a hospital thrift shop that:

a vending facility operated under the Maryland Vending Program for the Blind if:

an elementary or secondary school in the State or a nonprofit parent–teacher organization or other nonprofit organization within an elementary or secondary school in the State for the sale of magazine subscriptions in a fund–raising campaign, if the net proceeds are used solely for the educational benefit of the school or its students, including a sale resulting from an agreement or contract with an organization to participate in a fund–raising campaign for a percentage of the gross receipts under which students act as agents or salespersons for the organization by selling or taking orders for the sale;

a parent–teacher organization or other organization within an elementary or secondary school in the State or within a school system in the State;

subject to subsection (e) of this section, a bona fide church, religious organization, or other nonprofit organization exempt from taxation under § 501(c)(3) of the Internal Revenue Code if:

a nonprofit organization exempt from taxation under § 501(c)(3) of the Internal Revenue Code that maintains a memorial on property that is owned by the State if the proceeds of the sale are used to maintain a memorial on property that is owned by the State; or

an elementary or secondary school in the State or a nonprofit parent–teacher organization or other nonprofit organization within an elementary or secondary school in the State if the sale is made at a book fair held in–person on the premises of the school and the net proceeds are used solely for the educational benefit of the school or its students, including a sale resulting from an agreement or a contract with an organization to participate in a book fair for a percentage of the gross receipts under which students, teachers, school staff, or members of the parent–teacher organization or other nonprofit organization within an elementary or secondary school act as agents or salespersons for the third–party vendor by managing the book fair.

In this section the following words have the meanings indicated.

“Facility for food consumption” does not include parking spaces for vehicles as the sole accommodation.

“Food for immediate consumption” means:

“Premises” includes any building, grounds, parking lot, or other area that:

“Substantial grocery or market business” means a business at which at least 10% of all sales of food are sales of grocery or market food items, not including food normally consumed on the premises even though it is packaged to carry out.

Except as provided in paragraph (2) of this subsection, the sales and use tax does not apply to a sale of food for consumption off the premises by a food vendor who operates a substantial grocery or market business at the same location where the food is sold.

The exemption under paragraph (1) of this subsection does not apply to:

a sale of food:

if the proceeds of the sale are used to support a bona fide nationally organized and recognized organization of veterans or auxiliary of the organization or 1 of its units, a sale of food or meals for consumption only on the premises, served by the organization or auxiliary;

if the proceeds of the sale are used to support a volunteer fire company or department or its auxiliary or a volunteer ambulance company or rescue squad or its auxiliary, a sale of food served by the company, department, squad, or auxiliary; or

a sale of food, bottled water, soft drink or carbonated beverage, or candy or confectionery by a nonprofit food vendor at a youth sporting event or 4–H youth event for individuals under the age of 18 years if there are no facilities for food consumption on the premises, unless the sale is within an enclosure for which a charge is made for admission.

crabs; or

seafood that is not prepared for immediate consumption.

a sale of electricity, steam, or artificial or natural gas for use in residential condominiums;

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;

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;

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:

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.

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

a rental of equipment or machinery that:

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;

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

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.

the sale price is less than $1,000; and

the sale is not made through an auctioneer or a dealer.

a corporation or joint–stock company to its stockholders as a liquidating distribution;

a partnership to a partner; or

a limited liability company to a member.

The sales and use tax does not apply to a transfer of tangible personal property, a digital code, or a digital product:

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:

machinery or equipment used to produce bituminous concrete; or

electricity, fuel, and other utilities used to operate that machinery or equipment.

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;

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

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.

the taxable price of each piece of equipment is at least $2,000; and

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.

that enables a television or radio station to originate and broadcast or to receive and broadcast digital signals; and

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.

machinery or equipment used directly and predominantly to produce Energy Star windows or Energy Star entry doors for residential real property; or

electricity, fuel, and other utilities used to operate that machinery or equipment.

a sale, to or by a physician or hospital, of drugs or medical supplies;

a sale of medicine;

a sale of disposable medical supplies; or

a sale of a patient’s medical records to the patient or the patient’s representative.

a hemodialysis drug or device, by a licensed pharmacist or by a person who holds a permit under § 12–603 of the Health Occupations Article, directly to a hemodialysis patient requiring regular home treatment;

tangible personal property that is manufactured or adapted specifically to compensate for blindness, including braille slates and paper, items with braille markings, preset insulin syringes, and raised line drawing kits;

a decoder for captioned television programs for use by a hearing–impaired individual;

a telecommunications device that is adapted specifically for hearing–impaired individuals and is:

an artificial eye, hearing device, or limb;

a colostomy or ileostomy appliance;

corrective eyeglasses;

an orthopedic or surgical appliance prescribed by a physician and designed to be worn on the person of the user;

a battery for an artificial hearing device or larynx, transcutaneous nerve stimulator, or electrically powered wheelchair;

crutches;

a wheelchair;

a hospital bed;

an oxygen tent;

any other sickroom equipment that the Comptroller defines by regulations or medical equipment that:

tangible personal property for installation in a motor vehicle:

a wig or hairpiece needed as a result of documented medical or surgical treatment;

nicotine patches, nicotine gum, or any other product intended for use as an aid in tobacco use cessation and approved by the United States Food and Drug Administration for that purpose;

tangible personal property that is manufactured for the purpose of initiating, supporting, or sustaining breast–feeding, including breast pumps, breast pump kits, nipple enhancers, breast shields, breast shells, supplemental nursing systems, softcup feeders, feeding tubes, breast milk storage bags, periodontal syringes, finger feeders, haberman feeders, and purified lanolin;

baby bottles or baby bottle nipples;

a medical or clinical thermometer;

a pulse oximeter;

a blood pressure monitor;

an N95, China KN95, Japan DS, Korea 1st Class, AS/NZS P2, or European FFP2 filtering facepiece respirator; or

diabetic care items, including insulin, glucose tablets, glucose drinks, glucose gels, blood and urine ketone meters and supplies, insulin pumps, insulin pump infusion sets, insulin pump reservoirs or cartridges, continuous glucose monitors and related supplies, syringes, insulin injection devices, insulin pens, insulin pen needles, lancets and lancet devices, and testing strips for measuring blood sugar.

baby oil or baby powder;

diapers;

diaper rash cream;

baby wipes;

toothbrushes, toothpaste, tooth powders, mouthwash, dental floss, or other similar oral hygiene products; or

sanitary pads, tampons, menstrual sponges, menstrual cups, or other similar feminine hygiene products.

acquires before the property, digital code, digital product, or service enters the State; and

uses:

“precious metal bullion or coins” means:

“precious metal bullion or coins” does not include jewelry or a work of art made of precious metal bullion or coins.

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:

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.

The sales and use tax does not apply to the printing and sale of newspapers that are distributed by the publisher at no charge.

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.

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

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.

a sale for use of tangible personal property, a digital code, or a digital product that:

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

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.

on a sale under subsection (a)(1) of this section, when the tangible personal property is imported or stored in the State; and

on a sale under subsection (a)(2) of this section, when the sale is made.

filing a claim for refund with the Comptroller when the property is removed from the State; and

providing the Comptroller with the evidence that the Comptroller requires by regulation, including:

In this section, “research and development” means:

“Research and development” does not include:

is not a taxable service; and

involves a sale as an inconsequential element for which no separate charge is made.

The sales and use tax imposed on a taxable service described under § 11–101(m)(14) or (15) of this title does not apply to a sale of cloud computing to a qualified cybersecurity business.

a sale of an admission by a person whose gross receipts from the sale are subject to the admissions and amusement tax;

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;

a sale of a motor fuel that is subject to the motor fuel tax or the motor carrier tax;

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;

a lease of a motor vehicle that is leased for a period of at least 1 year;

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

except for a rental, a sale of a vessel that is subject to the excise tax under § 8-716 of the Natural Resources Article.

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.

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.

in the operation of the transportation system of a political subdivision of the State; and

for public transportation on regular schedules and between fixed termini, as defined in Title 11 of the Transportation Article; or

reproduced for sale; or

incorporated in whole or in part into another computer program intended for sale.

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.

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.

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:

In this section the following words have the meanings indicated.

“Tangible personal property, a digital code, a digital product, or a taxable service used directly in connection with a film production activity” includes:

Beginning in calendar year 2010, the 7–day period from the second Sunday in August through the following Saturday shall be a tax–free period for back–to–school shopping in Maryland during which the exemption under paragraph (2) of this subsection shall apply.

During the tax–free period for back–to–school shopping established under paragraph (1) of this subsection, the sales and use tax does not apply to:

In this section the following words have the meanings indicated.

“Geothermal equipment” means equipment that uses ground loop technology to heat and cool a structure.

“Residential wind energy equipment” means equipment installed on residential property that uses wind energy to generate electricity to be used in a residential structure on the property.

In this section the following words have the meanings indicated.

“Target redevelopment area” means any real property owned or leased by a person in Baltimore County that:

“Warehousing equipment” means equipment used for material handling and storage, including racking systems, conveying systems, and computer systems and equipment.

the material or equipment is purchased by a person solely for use in a target redevelopment area; and

the buyer provides the vendor with evidence of eligibility for the exemption issued by the Comptroller.

classrooms;

dining;

exercise;

food preparation or cooking;

meetings or gatherings;

offices used by the common ownership community for management of the community;

recreation;

security;

sports;

storage; or

any other common use.

In this section the following words have the meanings indicated.

“Pimlico site” and “training facility site” have the meanings stated in § 10–601 of the Economic Development Article.

the construction material is purchased by a person solely for use in furtherance of the provisions of Title 10, Subtitle 6 of the Economic Development Article for the construction or redevelopment at the Pimlico site or training facility site;

the sale is made before January 1, 2029; and

the buyer provides the vendor with eligibility of the exemption issued by the Comptroller.

has a maximum gross takeoff weight of 12,500 pounds or more; and

is primarily used in interstate or foreign commerce.

In this section the following words have the meanings indicated.

“Qualified opportunity zone” means any real property owned or leased by a person in Baltimore County that:

“Target redevelopment area” means any real property owned or leased by a person in Washington County that:

“Warehousing equipment” means equipment used for material handling and storage, including racking systems, conveying systems, and computer systems and equipment.

the material or equipment is purchased by a person solely for use in a qualified opportunity zone or target redevelopment area; and

the buyer provides the vendor with evidence of eligibility for the exemption issued by the Comptroller.

In this section the following words have the meanings indicated.

“Data center” means a building or group of buildings used to house computer systems, computer storage equipment, and associated infrastructure that businesses or other organizations use to organize, process, store, and disseminate large amounts of data.

“Department” means the Department of Commerce.

“Opportunity zone” means an area that has been designated as a qualified opportunity zone in the State under § 1400Z–1 of the Internal Revenue Code.

“Tier I area” means:

To qualify for the sales and use tax exemption under subsection (b) of this section, an individual or a corporation shall file an application for an exemption certificate with the Department.

The application must:

If, based on the information and supporting documentation provided in the application, the Department determines the applicant is eligible for the sales and use tax exemption under subsection (b) of this section, the Department shall certify the eligibility of the applicant.

Each year, the Department shall provide the Comptroller with a list of individuals and corporations that the Department determines are eligible for the sales and use tax exemption under subsection (b) of this section.

Within 30 days after receiving the list described in paragraph (1) of this subsection, the Comptroller shall issue to each individual and corporation listed a certificate of eligibility for the sales and use tax exemption under subsection (b) of this section.

maintain a record of:

allow the Department to inspect the records described in item (1) of this subsection.

The Department may revoke a certificate of eligibility under subsection (d) of this section if any representation made in connection with the application for the certificate is determined by the Department to have been false when made or if the applicant has failed to fulfill the applicant’s commitments under the application.

The revocation may be in full or in part as the Department may determine.

The individual or corporation shall have an opportunity to appeal any revocation to the Department before notification of the Comptroller.

The Comptroller may make an assessment against the individual or corporation to recapture any amount of sales and use tax that the individual or corporation has not paid as a result of an exemption under subsection (b) of this section.

“licensed caterer” means the holder of a food service facility license issued by a county that offers catering services in connection with a specific event; and

“licensed caterer” does not include a food service facility that is primarily engaged in the preparation and service of food to the general public at the facility.

to be used by the caterer to perform a contract for catering services; and

In this section the following words have the meanings indicated.

“Public school facility” has the meaning stated in § 10–601 of the Economic Development Article.

the construction material is purchased by a person solely for use in furtherance of the provisions of Title 10, Subtitle 6 of the Economic Development Article for the construction or redevelopment of a public school facility that is managed by the Maryland Stadium Authority;