<section article="gtg" article_name="Tax - General" number="11-101" future_version_removed="true" title_number="11" title_name="Sales and Use Tax" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="a–1"> <text>“Accommodation” means a right to occupy a room or lodgings as a transient guest.</text> </level> <level label="a–2"> <level label="1"> <text>“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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="a–3"> <text>“Accommodations provider” means a person that owns, operates, or manages an accommodation and makes the accommodation available for sale or use to a buyer.</text> </level> <level label="a–4"> <text>“Booking transaction” means any transaction in which there is a retail sale of an accommodation.</text> </level> <level label="b"> <text>“Buyer” means a person who:</text> <level label="1"> <text>acquires tangible personal property in a sale;</text> </level> <level label="2"> <text>obtains a taxable service in a sale; or</text> </level> <level label="3"> <text>acquires a digital code or digital product in a sale.</text> </level> </level> <level label="c"> <text>“Cleaning of a commercial or industrial building” means the following services performed to a commercial or industrial building:</text> <level label="1"> <text>floor, carpet, wall, window, ceiling, and exterior cleaning; and</text> </level> <level label="2"> <text>janitorial services.</text> </level> </level> <level label="c–1"> <text>“Customer tax address” means, with respect to a sale of a digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>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;</text> </level> <level label="5"> <text>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</text> </level> <level label="6"> <text>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:</text> <level label="i"> <text>the location in the United States of the headquarters of the vendor’s business;</text> </level> <level label="ii"> <text>the location in the United States where the vendor has the greatest number of employees; or</text> </level> <level label="iii"> <text>the location in the United States from which the vendor makes digital products available for electronic transfer.</text> </level> </level> </level> <level label="c–2"> <text>“Detective” means a person who is authorized to provide private detective services under Title 13 of the Business Occupations and Professions Article.</text> </level> <level label="c–3"> <level label="1"> <text>“Digital code” means a number, symbol, alphanumeric sequence, barcode, or similar code that:</text> <level label="i"> <text>may be obtained by any means, including:</text> <level label="1"> <text>in a tangible form, such as a card; or</text> </level> <level label="2"> <text>through e–mail; and</text> </level> </level> <level label="ii"> <text>provides a buyer with a right to obtain one or more digital products.</text> </level> </level> <level label="2"> <text>“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.</text> </level> </level> <level label="c–4"> <level label="1"> <text>“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.</text> </level> <level label="2"> <text>“Digital product” includes:</text> <level label="i"> <text>a work that results from the fixation of a series of sounds that are transferred electronically, including:</text> <level label="1"> <text>prerecorded or live music or performances, readings of books or other written materials, and speeches; and</text> </level> <level label="2"> <text>audio greeting cards sent by e–mail;</text> </level> </level> <level label="ii"> <text>a digitized sound file, such as a ring tone, that is downloaded onto a device and may be used to alert the user of the device with respect to a communication;</text> </level> <level label="iii"> <text>a series of related images that, when shown in succession, impart an impression of motion, together with any accompanying sounds that are transferred electronically, including motion pictures, musical videos, news and entertainment programs, live events, video greeting cards sent by e–mail, and video or electronic games;</text> </level> <level label="iv"> <text>a book, generally known as an “e–book”, that is transferred electronically; and</text> </level> <level label="v"> <text>a newspaper, magazine, periodical, chat room discussion, weblog, or any other similar product that is transferred electronically.</text> </level> </level> <level label="3"> <text>“Digital product” does not include:</text> <level label="i"> <text>prerecorded or live instruction by a public, private, or parochial elementary or secondary school or a public or private institution of higher education;</text> </level> <level label="ii"> <text>instruction in a skill or profession in a buyer’s current or prospective business, occupation, or trade if the instruction:</text> <level label="1"> <text>is not prerecorded; and</text> </level> <level label="2"> <text>features an interactive element between the buyer and the instructor or other buyers contemporaneous with the instruction;</text> </level> </level> <level label="iii"> <text>a seminar, discussion, or similar event hosted by a nonprofit organization or business association, if the seminar, discussion, or event:</text> <level label="1"> <text>is not prerecorded; and</text> </level> <level label="2"> <text>features an interactive element between the buyer and host or other buyers contemporaneous with the seminar, discussion, or event;</text> </level> </level> <level label="iv"> <text>a professional service obtained electronically or delivered through the use of technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities;</text> </level> <level label="v"> <text>a product having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities where the purchaser holds a copyright or other intellectual property interest in the product, in whole or in part, if the purchaser uses the product solely for commercial purposes, including advertising or other marketing activities; or</text> </level> <level label="vi"> <text>computer software or software as a service purchased or licensed solely for commercial purposes in an enterprise computer system, including operating programs or application software for the exclusive use of the enterprise software system, that is housed or maintained by the purchaser or on a cloud server, whether hosted by the purchaser, the software vendor, or a third party.</text> </level> </level> </level> <level label="c–5"> <level label="1"> <text>“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.</text> </level> <level label="2"> <text>“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.</text> </level> </level> <level label="c–6"> <text>“Home amenity” means any portion, whether indoors or outdoors, of a residential property, excluding bedrooms or any portion of the property intended for sleeping quarters, that is occupied by the hour and for not more than 15 hours consecutively.</text> </level> <level label="c–7"> <text>“Home amenity rental” means the temporary use in exchange for consideration of a home amenity.</text> </level> <level label="c–8"> <level label="1"> <text>“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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c–9"> <text>“Home amenity rental platform” means an Internet–based digital entity that:</text> <level label="1"> <text>advertises the availability of home amenities; and</text> </level> <level label="2"> <text>receives compensation for facilitating reservations or processing booking transactions on behalf of the owner, operator, or manager of a home amenity.</text> </level> </level> <level label="c–10"> <level label="1"> <text>“Marketplace facilitator” means a person that:</text> <level label="i"> <text>facilitates a retail sale by a marketplace seller by listing or advertising for sale in a marketplace tangible personal property, digital code, or a digital product; and</text> </level> <level label="ii"> <text>regardless of whether the person receives compensation or other consideration in exchange for the person’s services, directly or indirectly through agreements with third parties, collects payment from a buyer and transmits the payment to the marketplace seller.</text> </level> </level> <level label="2"> <text>“Marketplace facilitator” does not include:</text> <level label="i"> <text>a platform or forum that exclusively provides Internet advertising services, including listing products for sale, if the platform or forum does not also engage, directly or indirectly, in collecting payment from a buyer and transmitting that payment to the vendor;</text> </level> <level label="ii"> <text>a payment processor business appointed by a vendor to handle payment transactions from clients, including credit cards and debit cards, whose only activity with respect to marketplace sales is to handle transactions between two parties; or</text> </level> <level label="iii"> <text>a delivery service company that delivers tangible personal property on behalf of a marketplace seller that is engaged in the business of a retail vendor and holds a license issued under Subtitle 7 of this title.</text> </level> </level> </level> <level label="c–11"> <text>“Marketplace seller” means a person that makes a retail sale or sale for use through a physical or electronic marketplace operated by a marketplace facilitator.</text> </level> <level label="c–12"> <text>“NAICS” means the North American Industrial Classification System, United States Manual, 2022 Edition, published by the United States Office of Management and Budget.</text> </level> <level label="c–13"> <text>“Permanent” means perpetual or for an indefinite or unspecified length of time.</text> </level> <level label="d"> <text>“Person” includes:</text> <level label="1"> <text>this State or a political subdivision, unit, or instrumentality of this State;</text> </level> <level label="2"> <text>another state or a political subdivision, unit, or instrumentality of that state; and</text> </level> <level label="3"> <text>a unit or instrumentality of a political subdivision of this State or of another state.</text> </level> </level> <level label="e"> <text>“Prepaid telephone calling arrangement” means the right to use telecommunications services, paid for in advance, that enables the origination of calls using an access number or authorization code, whether manually or electronically dialed.</text> </level> <level label="e–1"> <level label="1"> <text>“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:</text> <level label="i"> <text>the residential street address or a business street address of the actual end user of the digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section including, if applicable, the address of a donee of the buyer that is designated by the buyer; or</text> </level> <level label="ii"> <text>if the buyer is not an individual, the location of the buyer’s end users, including employees, or equipment that makes use of the digital code, digital product, or taxable service described under subsection (m)(14) or (15) of this section.</text> </level> </level> <level label="2"> <text>“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.</text> </level> </level> <level label="f"> <level label="1"> <text>“Production activity” means:</text> <level label="i"> <text>except for processing food or a beverage by a retail food vendor, assembling, manufacturing, processing, or refining tangible personal property for resale;</text> </level> <level label="ii"> <text>generating electricity for sale or for use in another production activity;</text> </level> <level label="iii"> <level label="1"> <text>laundering, maintaining, or preparing textile products for rental; or</text> </level> <level label="2"> <text>laundering, maintaining, or preparing textile products in providing the taxable service of 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;</text> </level> </level> <level label="iv"> <text>producing or repairing production machinery or equipment;</text> </level> <level label="v"> <text>establishing or maintaining clean rooms or clean zones as required by applicable provisions of the Federal Food, Drug, and Cosmetic Act, the Public Health Service Act, and the Virus–Serum–Toxin Act, and the regulations adopted thereunder, pertaining to the manufacture of drugs, medical devices, or biologics;</text> </level> <level label="vi"> <text>providing for the safety of employees; or</text> </level> <level label="vii"> <text>providing for quality control.</text> </level> </level> <level label="2"> <text>“Production activity” does not include:</text> <level label="i"> <text>servicing or repairing tangible personal property, except for servicing or repairing production machinery or equipment;</text> </level> <level label="ii"> <text>maintaining tangible personal property other than textile products for rental and production machinery and equipment, except for maintaining tangible personal property in providing the taxable service of 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;</text> </level> <level label="iii"> <text>providing for the comfort or health of employees; or</text> </level> <level label="iv"> <text>storing the finished product.</text> </level> </level> </level> <level label="g"> <text>“Production machinery or equipment” means machinery or equipment used in a production activity.</text> </level> <level label="h"> <level label="1"> <text>“Retail sale” means the sale of:</text> <level label="i"> <text>tangible personal property;</text> </level> <level label="ii"> <text>a taxable service;</text> </level> <level label="iii"> <text>a digital code; or</text> </level> <level label="iv"> <text>a digital product.</text> </level> </level> <level label="2"> <text>“Retail sale” includes:</text> <level label="i"> <text>a sale of tangible personal property for use or resale in the form of real estate by a builder, contractor, or landowner;</text> </level> <level label="ii"> <text>except as provided in paragraph (3)(i) of this subsection, use of tangible personal property as facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns, even if the buyer intends to transfer title to the property before or after that use;</text> </level> <level label="iii"> <text>a sale of a digital product that is sold with rights of permanent use or sold with rights of less than permanent use to an end user;</text> </level> <level label="iv"> <text>a sale of a digital product that is sold with rights of use conditioned on continued payment by the subscriber or buyer to an end user; and</text> </level> <level label="v"> <text>a sale to an end user of a digital code or a subscription to, access to, receipt of, or streaming of a digital product.</text> </level> </level> <level label="3"> <text>“Retail sale” does not include:</text> <level label="i"> <text>a transfer of title to tangible personal property after its use as facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns, if:</text> <level label="1"> <text>at the time of purchase, the buyer is obligated, under the terms of a written contract, to make the transfer; and</text> </level> <level label="2"> <text>the transfer is made for the same or greater consideration to the person for whom the buyer manufactures goods or performs work;</text> </level> </level> <level label="ii"> <text>a sale of tangible personal property, a digital code, or a digital product if the buyer intends to:</text> <level label="1"> <text>resell the tangible personal property, digital code, or digital product in the form that the buyer receives or is to receive the property, digital code, or digital product;</text> </level> <level label="2"> <text>use or incorporate the tangible personal property, digital code, or digital product in a production activity as a material or part of other tangible personal property or another digital product to be produced for sale; or</text> </level> <level label="3"> <text>transfer the tangible personal property, digital code, or digital product as a part of a taxable service transaction; or</text> </level> </level> <level label="iii"> <text>a sale of a taxable service if the buyer intends to resell the taxable service in the form that the buyer receives or is to receive the service.</text> </level> </level> </level> <level label="i"> <level label="1"> <text>“Sale” means a transaction for a consideration whereby:</text> <level label="i"> <text>title to or possession of property, a digital code, or a digital product is transferred or is to be transferred absolutely or conditionally by any means, including by lease, rental, royalty agreement, or grant of a license for use; or</text> </level> <level label="ii"> <text>a person performs a service for another person.</text> </level> </level> <level label="2"> <text>“Sale” does not include a transaction whereby an employee performs a service for the employee’s employer.</text> </level> </level> <level label="j"> <text>“Sale for use” means a sale in which tangible personal property, a digital code, a digital product, or a taxable service that is consumed, possessed, stored, or used in the State is acquired.</text> </level> <level label="j–1"> <text>“Short–term rental” means the temporary use of a short–term rental unit to provide accommodation to transient guests for lodging purposes in exchange for consideration.</text> </level> <level label="j–2"> <text>“Short–term rental platform” means an Internet–based digital entity that:</text> <level label="1"> <text>advertises the availability of short–term rental units for rent; and</text> </level> <level label="2"> <text>receives compensation for facilitating reservations or processing booking transactions on behalf of the owner, operator, or manager of a short–term rental unit.</text> </level> </level> <level label="j–3"> <level label="1"> <text>“Short–term rental unit” means a residential dwelling unit or a portion of the unit used for short–term rentals.</text> </level> <level label="2"> <text>“Short–term rental unit” includes a single–family house or dwelling, a multifamily house or dwelling, an apartment, a condominium, or a cooperative.</text> </level> </level> <level label="j–4"> <text>“Subscription” means, with respect to a digital product, an arrangement with a vendor that grants a buyer the right to obtain digital products from within one or more product categories having the same tax treatment, in a fixed quantity or for a fixed period of time or both.</text> </level> <level label="k"> <level label="1"> <text>“Tangible personal property” means:</text> <level label="i"> <text>corporeal personal property of any nature;</text> </level> <level label="ii"> <text>an accommodation;</text> </level> <level label="iii"> <text>a short–term rental; or</text> </level> <level label="iv"> <text>a home amenity rental.</text> </level> </level> <level label="2"> <text>“Tangible personal property” includes:</text> <level label="i"> <text>farm equipment;</text> </level> <level label="ii"> <text>wall–to–wall carpeting that is installed into real estate, regardless of the purpose, method, or permanency of its installation; and</text> </level> <level label="iii"> <text>coal, electricity, oil, nuclear fuel assemblies, steam, and artificial or natural gas.</text> </level> </level> </level> <level label="l"> <level label="1"> <text>“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:</text> <level label="i"> <text>any labor or service rendered;</text> </level> <level label="ii"> <text>any material used; or</text> </level> <level label="iii"> <text>any property, digital code, or digital product sold.</text> </level> </level> <level label="2"> <text>“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.</text> </level> <level label="3"> <text>“Taxable price” does not include:</text> <level label="i"> <text>a charge that is made in connection with a sale and is stated as a separate item of the consideration for:</text> <level label="1"> <text>a delivery, freight, or other transportation service for delivery directly to the buyer by the vendor or by another person acting for the vendor, unless the transportation service is a taxable service;</text> </level> <level label="2"> <text>a finance charge, interest, or similar charge for credit extended to the buyer;</text> </level> <level label="3"> <text>a labor or service for application or installation;</text> </level> <level label="4"> <text>a mandatory gratuity or service charge in the nature of a tip for serving food or beverage to a group of 10 or fewer individuals for consumption on the premises of the vendor;</text> </level> <level label="5"> <text>a professional service;</text> </level> <level label="6"> <text>a tax:</text> </level> <level label="A"> <text>imposed by a county on the sale of coal, electricity, oil, nuclear fuel assemblies, steam, or artificial or natural gas;</text> </level> <level label="B"> <text>imposed under § 3–302(a) of the Natural Resources Article, as a surcharge on electricity, and added to an electric bill;</text> </level> <level label="C"> <text>imposed under §§ 6–201 through 6–203 of the Tax – Property Article, on tangible personal property subject to a lease that is for an initial period that exceeds 1 year and is noncancellable except for cause; or</text> </level> <level label="D"> <text>imposed under § 4–102 of this article on the gross receipts derived from an admissions and amusement charge;</text> </level> <level label="7"> <text>any service for the operation of equipment used for the production of audio, video, or film recordings; or</text> </level> <level label="8"> <text>reimbursement of incidental expenses paid to a third party and incurred in connection with providing a taxable detective service;</text> </level> </level> <level label="ii"> <text>the value of a used component or part (core value) received from a purchaser of the following remanufactured truck parts:</text> <level label="1"> <text>an air brake system;</text> </level> <level label="2"> <text>an engine;</text> </level> <level label="3"> <text>a rear axle carrier; or</text> </level> <level label="4"> <text>a transmission;</text> </level> </level> <level label="iii"> <text>a charge for a nontaxable service that is made in connection with a sale of a taxable communication service, even if the nontaxable charges are aggregated with and not separately stated from the taxable charges for communications services, if the vendor can reasonably identify charges not subject to tax from its books and records that are kept in the regular course of business;</text> </level> <level label="iv"> <text>a transportation network company impact fee imposed under § 10–408 of the Public Utilities Article; or</text> </level> <level label="v"> <text>an amount not exceeding 2 cents collected due to rounding the price for a good or service in accordance with Title 1, Subtitle 6 of the Business Regulation Article.</text> </level> </level> <level label="4"> <text>“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:</text> <level label="i"> <text>a short–term vehicle rental, as defined in § 11–104(c) of this subtitle; or</text> </level> <level label="ii"> <text>a shared motor vehicle used for peer–to–peer car sharing and made available on a peer–to–peer car sharing program, as defined in § 19–520 of the Insurance Article.</text> </level> </level> <level label="5"> <text>“Taxable price” includes:</text> <level label="i"> <text>for the sale or use of an accommodation facilitated by an accommodations intermediary or a short–term rental platform, the full amount of the consideration paid by a buyer for the sale or use of an accommodation, but not including any tax that is remitted to a taxing authority; and</text> </level> <level label="ii"> <text>for the sale or use of a home amenity rental facilitated by a home amenity rental intermediary or home amenity rental platform, the full amount of consideration paid by a buyer for the sale or use of a home amenity rental, but not including any tax that is remitted to a taxing authority.</text> </level> </level> <level label="6"> <text>“Taxable price” does not include:</text> <level label="i"> <text>for the sale or use of an accommodation facilitated by an accommodations intermediary or a short–term rental platform, a commission paid by an accommodations provider to a person after facilitating the sale or use of an accommodation; or</text> </level> <level label="ii"> <text>for the sale or use of a home amenity rental facilitated by a home amenity rental intermediary or home amenity rental platform, a commission paid by a home amenity rental provider to a person after facilitating the sale or use of a home amenity rental.</text> </level> </level> </level> <level label="m"> <text>“Taxable service” means:</text> <level label="1"> <text>fabrication, printing, or production of tangible personal property or a digital product by special order;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>cleaning of a commercial or industrial building;</text> </level> <level label="4"> <text>cellular telephone or other mobile telecommunications service;</text> </level> <level label="5"> <text>“900”, “976”, “915”, and other “900”–type telecommunications service;</text> </level> <level label="6"> <text>custom calling service provided in connection with basic telephone service;</text> </level> <level label="7"> <text>a telephone answering service;</text> </level> <level label="8"> <text>pay per view television service;</text> </level> <level label="9"> <text>credit reporting;</text> </level> <level label="10"> <text>a security service, including:</text> <level label="i"> <text>a detective, guard, or armored car service; and</text> </level> <level label="ii"> <text>a security systems service;</text> </level> </level> <level label="11"> <text>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;</text> </level> <level label="12"> <text>a prepaid telephone calling arrangement;</text> </level> <level label="13"> <text>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;</text> </level> <level label="14"> <text>a data or information technology service described under NAICS Sector 518, 519, or 5415; or</text> </level> <level label="15"> <text>a system software or application software publishing service described under NAICS Sector 5132.</text> </level> </level> <level label="m–1"> <level label="1"> <text>“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.</text> </level> <level label="2"> <text>“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.</text> </level> </level> <level label="n"> <level label="1"> <text>“Use” means an exercise of a right or power to use, consume, possess, or store that is acquired by a sale for use of:</text> <level label="i"> <text>tangible personal property;</text> </level> <level label="ii"> <text>a taxable service;</text> </level> <level label="iii"> <text>a digital code; or</text> </level> <level label="iv"> <text>a digital product.</text> </level> </level> <level label="2"> <text>“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:</text> <level label="i"> <text>for use or resale in the form of real estate by a builder, contractor, or landowner; or</text> </level> <level label="ii"> <text>except as provided in paragraph (3)(i) of this subsection, as facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns, even if the buyer intends to transfer title to the property, digital code, or digital product before or after that use.</text> </level> </level> <level label="3"> <text>“Use” does not include:</text> <level label="i"> <text>a transfer of title to tangible personal property after its use as facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns, if:</text> <level label="1"> <text>at the time of purchase, the buyer is obligated, under the terms of a written contract, to make the transfer; and</text> </level> <level label="2"> <text>the transfer is made for the same or greater consideration to the person for whom the buyer manufactures goods or performs work;</text> </level> </level> <level label="ii"> <text>an exercise of a right or power over tangible personal property, a digital code, or a digital product acquired by a sale for use if the buyer intends to:</text> <level label="1"> <text>resell the tangible personal property, digital code, or digital product in the form that the buyer receives or is to receive the property, digital code, or digital product;</text> </level> <level label="2"> <text>use or incorporate the tangible personal property or digital product in a production activity as a material or part of other tangible personal property or another digital product to be produced for sale; or</text> </level> <level label="3"> <text>transfer the tangible personal property, digital code, or digital product as part of a taxable service transaction;</text> </level> </level> <level label="iii"> <text>an exercise of a right or power over a taxable service acquired by a sale for use if the buyer intends to resell the taxable service in the form that the buyer receives or is to receive the service;</text> </level> <level label="iv"> <text>an exercise of a right or power over a digital code to receive or access a digital product;</text> </level> <level label="v"> <text>an exercise of a right or power over a digital product acquired by a sale for use if the buyer is not an end user; or</text> </level> <level label="vi"> <text>the use or transfer of a digital product or digital code by the transferor and obtained by the end user free of charge.</text> </level> </level> </level> <level label="o"> <level label="1"> <text>“Vendor” means a person who:</text> <level label="i"> <text>engages in the business of an out–of–state vendor, as defined in § 11–701 of this title;</text> </level> <level label="ii"> <text>engages in the business of a retail vendor, as defined in § 11–701 of this title;</text> </level> <level label="iii"> <text>holds a special license issued under § 11–707 of this title;</text> </level> <level label="iv"> <text>is an accommodations intermediary or a home amenity rental intermediary;</text> </level> <level label="v"> <text>is a short–term rental platform or home amenity rental platform;</text> </level> <level label="vi"> <text>engages in the business of a marketplace facilitator; or</text> </level> <level label="vii"> <text>engages in the business of a marketplace seller.</text> </level> </level> <level label="2"> <text>“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:</text> <level label="i"> <text>under whom the agent operates; or</text> </level> <level label="ii"> <text>from whom the agent obtains the tangible personal property, a digital code, a digital product, or taxable service for sale.</text> </level> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-102" title_number="11" title_name="Sales and Use Tax" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>Except as otherwise provided in this title, a tax is imposed on:</text> <level label="1"> <text>a retail sale in the State; and</text> </level> <level label="2"> <text>a use, in the State, of tangible personal property, a digital code, a digital product, or a taxable service.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>A county, municipal corporation, special taxing district, or other political subdivision of the State may not impose any retail sales or use tax except:</text> <level label="i"> <text>a sales tax or use tax that was in effect on January 1, 1971;</text> </level> <level label="ii"> <text>a tax on the sale or use of:</text> <level label="1"> <text>fuels;</text> </level> <level label="2"> <text>utilities;</text> </level> <level label="3"> <text>space rentals; or</text> </level> <level label="4"> <text>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</text> </level> </level> <level label="iii"> <text>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.</text> </level> </level> <level label="2"> <text>Paragraph (1) of this subsection may not be construed as conferring authority to impose a sales and use tax.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-103" title_number="11" title_name="Sales and Use Tax" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>The retail sale of a digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this subtitle shall be presumed to be made in the state in which the customer tax address is located.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-104" title_number="11" title_name="Sales and Use Tax" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>Except as otherwise provided in this section, the sales and use tax rate is:</text> <level label="1"> <text>for a taxable price of less than $1:</text> <level label="i"> <text>1 cent if the taxable price is 20 cents;</text> </level> <level label="ii"> <text>2 cents if the taxable price is at least 21 cents but less than 34 cents;</text> </level> <level label="iii"> <text>3 cents if the taxable price is at least 34 cents but less than 51 cents;</text> </level> <level label="iv"> <text>4 cents if the taxable price is at least 51 cents but less than 67 cents;</text> </level> <level label="v"> <text>5 cents if the taxable price is at least 67 cents but less than 84 cents; and</text> </level> <level label="vi"> <text>6 cents if the taxable price is at least 84 cents; and</text> </level> </level> <level label="2"> <text>for a taxable price of $1 or more:</text> <level label="i"> <text>6 cents for each exact dollar; and</text> </level> <level label="ii"> <text>for that part of a dollar in excess of an exact dollar:</text> <level label="1"> <text>1 cent if the excess over an exact dollar is at least 1 cent but less than 17 cents;</text> </level> <level label="2"> <text>2 cents if the excess over an exact dollar is at least 17 cents but less than 34 cents;</text> </level> <level label="3"> <text>3 cents if the excess over an exact dollar is at least 34 cents but less than 51 cents;</text> </level> <level label="4"> <text>4 cents if the excess over an exact dollar is at least 51 cents but less than 67 cents;</text> </level> <level label="5"> <text>5 cents if the excess over an exact dollar is at least 67 cents but less than 84 cents; and</text> </level> <level label="6"> <text>6 cents if the excess over an exact dollar is at least 84 cents.</text> </level> </level> </level> </level> <level label="b"> <text>If a retail sale of tangible personal property or a taxable service is made through a vending or other self–service machine, the sales and use tax rate is 6%, applied to 94.5% of the gross receipts from the vending machine sales.</text> </level> <level label="c"> <level label="1"> <text>In this subsection:</text> <level label="i"> <text>“short–term vehicle rental” means a rental of a passenger car, as defined in § 11–144.2 of the Transportation Article, or a vehicle that may be registered as a Class D, E, F, G, or M vehicle under Title 13, Subtitle 9 of the Transportation Article, for a period of 180 days or less under the following terms:</text> <level label="1"> <text>the vendor does not provide a driver for the vehicle as a part of the rental; and</text> </level> <level label="2"> <text>if the vehicle is a passenger car, as defined in § 11–144.2 of the Transportation Article, a multipurpose passenger vehicle, or a motorcycle, the vehicle is not to be used to transport individuals or property for hire; and</text> </level> </level> <level label="ii"> <text>“short–term vehicle rental” does not include a rental of:</text> <level label="1"> <text>a dump truck, as described in § 13–919 of the Transportation Article;</text> </level> <level label="2"> <text>a tow truck, as described in § 13–920 of the Transportation Article;</text> </level> <level label="3"> <text>a farm vehicle exempt from the sales and use tax under § 11–201(a) of this title; or</text> </level> <level label="4"> <text>a shared motor vehicle used for peer–to–peer car sharing and made available on a peer–to–peer car sharing program, as defined in § 19–520 of the Insurance Article and that is subject to sales and use tax under subsection (c–1) of this section.</text> </level> </level> </level> <level label="2"> <text>The sales and use tax rate for a short–term vehicle rental for a taxable price of $2 or more is:</text> <level label="i"> <text>if the vehicle is a passenger car, a multipurpose passenger vehicle, or a motorcycle:</text> <level label="1"> <text>23 cents for each exact multiple of $2; and</text> </level> <level label="2"> <text>for that part of $2 in excess of an exact multiple of $2:</text> </level> <level label="A"> <text>1 cent if the excess over an exact multiple of $2 is at least 1 cent but less than 9 cents;</text> </level> <level label="B"> <text>2 cents if the excess over an exact multiple of $2 is at least 9 cents but less than 18 cents;</text> </level> <level label="C"> <text>3 cents if the excess over an exact multiple of $2 is at least 18 cents but less than 27 cents;</text> </level> <level label="D"> <text>4 cents if the excess over an exact multiple of $2 is at least 27 cents but less than 35 cents;</text> </level> <level label="E"> <text>5 cents if the excess over an exact multiple of $2 is at least 35 cents but less than 44 cents;</text> </level> <level label="F"> <text>6 cents if the excess over an exact multiple of $2 is at least 44 cents but less than 53 cents;</text> </level> <level label="G"> <text>7 cents if the excess over an exact multiple of $2 is at least 53 cents but less than 61 cents;</text> </level> <level label="H"> <text>8 cents if the excess over an exact multiple of $2 is at least 61 cents but less than 70 cents;</text> </level> <level label="I"> <text>9 cents if the excess over an exact multiple of $2 is at least 70 cents but less than 79 cents;</text> </level> <level label="J"> <text>10 cents if the excess over an exact multiple of $2 is at least 79 cents but less than 87 cents;</text> </level> <level label="K"> <text>11 cents if the excess over an exact multiple of $2 is at least 87 cents but less than 96 cents;</text> </level> <level label="L"> <text>12 cents if the excess over an exact multiple of $2 is at least 96 cents but less than $1.05;</text> </level> <level label="M"> <text>13 cents if the excess over an exact multiple of $2 is at least $1.05 but less than $1.14;</text> </level> <level label="N"> <text>14 cents if the excess over an exact multiple of $2 is at least $1.14 but less than $1.22;</text> </level> <level label="O"> <text>15 cents if the excess over an exact multiple of $2 is at least $1.22 but less than $1.31;</text> </level> <level label="P"> <text>16 cents if the excess over an exact multiple of $2 is at least $1.31 but less than $1.40;</text> </level> <level label="Q"> <text>17 cents if the excess over an exact multiple of $2 is at least $1.40 but less than $1.48;</text> </level> <level label="R"> <text>18 cents if the excess over an exact multiple of $2 is at least $1.48 but less than $1.57;</text> </level> <level label="S"> <text>19 cents if the excess over an exact multiple of $2 is at least $1.57 but less than $1.66;</text> </level> <level label="T"> <text>20 cents if the excess over an exact multiple of $2 is at least $1.66 but less than $1.74;</text> </level> <level label="U"> <text>21 cents if the excess over an exact multiple of $2 is at least $1.74 but less than $1.83;</text> </level> <level label="V"> <text>22 cents if the excess over an exact multiple of $2 is at least $1.83 but less than $1.92; and</text> </level> <level label="W"> <text>23 cents if the excess over an exact multiple of $2 is at least $1.92 but less than $2.00; or</text> </level> </level> <level label="ii"> <text>if the vehicle is a vehicle that may be registered as a Class E, F, or G vehicle under Title 13, Subtitle 9 of the Transportation Article:</text> <level label="1"> <text>8 cents for each exact dollar; and</text> </level> <level label="2"> <text>2 cents for each 25 cents or part of 25 cents in excess of an exact dollar.</text> </level> </level> </level> </level> <level label="c–1"> <text>The sales and use tax rate for sales and charges made in connection with a shared motor vehicle used for peer–to–peer car sharing and made available on a peer–to–peer car sharing program, as defined in § 19–520 of the Insurance Article, is:</text> <level label="1"> <text>except as provided in item (2) of this subsection, 8% of the taxable price; and</text> </level> <level label="2"> <level label="11"> <text>5% of the taxable price, if the vehicle is a passenger car, a multipurpose passenger vehicle, or a motorcycle that is part of a fleet of vehicles that includes more than 10 vehicles owned by the same person.</text> </level> </level> </level> <level label="d"> <text>The sales and use tax rate for the first retail sale of a manufactured home, as defined in § 12–301(g) of the Public Safety Article, is the rate imposed under subsection (a) of this section applied to 60% of the taxable price.</text> </level> <level label="e"> <text>The rate of the hotel surcharge imposed under § 11–102(b) of this subtitle is 2.5% of the taxable price.</text> </level> <level label="f"> <level label="1"> <text>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:</text> <level label="i"> <text>intended to become real property;</text> </level> <level label="ii"> <text>primarily constructed at a location other than the permanent site at which they are to be assembled;</text> </level> <level label="iii"> <text>built to comply with the standards for industrialized buildings under Title 12, Subtitle 3 of the Public Safety Article; and</text> </level> <level label="iv"> <text>shipped with most permanent components in place.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="g"> <text>The sales and use tax rate for the sale of an alcoholic beverage, as defined in § 5–101 of this article, is:</text> <level label="1"> <text>9% of the charge for the alcoholic beverage; and</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>any labor or service rendered;</text> </level> <level label="ii"> <text>any material used; or</text> </level> <level label="iii"> <text>any property sold.</text> </level> </level> </level> <level label="h"> <level label="1"> <level label="i"> <text>In this subsection the following words have the meanings indicated.</text> </level> <level label="ii"> <text>“Dyed diesel fuel” means diesel fuel that is dyed under U.S. Environmental Protection Agency rules for high sulfur diesel fuel or is dyed under Internal Revenue Service rules for nontaxable use.</text> </level> <level label="iii"> <text>“Marina” means a person who maintains a place of business where motor fuel is sold primarily to vessels.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="i"> <text>The sales and use tax rate for a mandatory gratuity or service charge in the nature of a tip for serving food or any type of beverage to a group of more than 10 individuals is 6%.</text> </level> <level label="j"> <level label="1"> <level label="i"> <text>In this subsection, the following words have the meanings indicated.</text> </level> <level label="ii"> <text>“Electronic smoking device” has the meaning stated in § 16.7–101 of the Business Regulation Article.</text> </level> <level label="iii"> <text>“Tobacco pipe” means a pipe made primarily of meerschaum, wood, or porcelain, with a bowl designed to be used without a screen or filter.</text> </level> <level label="iv"> <text>“Vaping liquid” has the meaning stated in § 16.7–101 of the Business Regulation Article.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>The sales and use tax for tobacco pipes is 12% of the taxable price.</text> </level> </level> <level label="k"> <text>The sales and use tax rate for cannabis, as defined in § 1–101 of the Alcoholic Beverages and Cannabis Article is:</text> <level label="1"> <text>for fiscal years 2024 through 2025, 9%; and</text> </level> <level label="2"> <text>for fiscal year 2026 and each fiscal year thereafter, 12%.</text> </level> </level> <level label="l"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-105" title_number="11" title_name="Sales and Use Tax" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>The credit allowed under subsection (a) of this section may not exceed $500 for each return.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <level label="1"> <level label="i"> <text>In this subsection the following words have the meanings indicated.</text> </level> <level label="ii"> <text>“Qualified job training organization” means an organization that:</text> <level label="1"> <text>is located in the State;</text> </level> <level label="2"> <text>is exempt from taxation under § 501(c)(3) of the Internal Revenue Code;</text> </level> <level label="3"> <text>conducts retail sales of donated items;</text> </level> <level label="4"> <text>provides job training and employment services to individuals with workplace disadvantages or disabilities; and</text> </level> <level label="5"> <text>uses a majority of its revenue for job training and job placement programs:</text> </level> <level label="A"> <text>that assist individuals with growth in employment hours;</text> </level> <level label="B"> <text>for individuals with low income, workplace disadvantages, disabilities, or barriers to employment; or</text> </level> <level label="C"> <text>for veterans.</text> </level> </level> <level label="iii"> <text>“Secretary” means the Secretary of Labor.</text> </level> </level> <level label="2"> <level label="i"> <text>Subject to subparagraphs (ii) and (iii) of this paragraph, a vendor who is a qualified job training organization certified under paragraph (3) of this subsection and timely files a sales and use tax return is allowed a credit equal to 100% of the gross amount of sales and use tax that the vendor is to pay to the Comptroller.</text> </level> <level label="ii"> <text>A vendor who claims a credit under subparagraph (i) of this paragraph may not claim a credit under subsections (a) through (c) of this section.</text> </level> <level label="iii"> <text>For any calendar year, the total amount of credits that a vendor may claim may not exceed $100,000.</text> </level> </level> <level label="3"> <level label="i"> <text>A vendor may apply to the Secretary to be certified as a qualified job training organization.</text> </level> <level label="ii"> <text>Within 30 days of receiving the application, the Secretary shall review the application and if the vendor:</text> <level label="1"> <text>is determined to be a qualified job training organization, certify the vendor as a qualified job training organization and notify the vendor and the Comptroller; or</text> </level> <level label="2"> <text>is determined not to be a qualified job training organization, notify the vendor.</text> </level> </level> </level> <level label="4"> <text>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:</text> <level label="i"> <text>the amount of credits claimed;</text> </level> <level label="ii"> <text>the amount spent by the vendor on job training and employment services; and</text> </level> <level label="iii"> <text>the number of individuals receiving job training and employment services.</text> </level> </level> <level label="5"> <text>The Comptroller shall adopt regulations to implement this subsection.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-106" title_number="11" title_name="Sales and Use Tax" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this section, “Agreement” means 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.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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:</text> <level label="i"> <text>identify and implement:</text> <level label="1"> <text>any changes to State statutes, regulations, or policies that need to be made in order to bring the State into compliance with the Agreement; and</text> </level> <level label="2"> <text>any other changes to State laws that would not be required but that the Comptroller recommends should reasonably be made in connection with implementing the Agreement; and</text> </level> </level> <level label="ii"> <text>for each change identified under item (i) of this paragraph:</text> <level label="1"> <text>estimates the impact of that change on State sales and use tax revenue; and</text> </level> <level label="2"> <text>identifies and explains any fiscal or policy issues that would be associated with the change.</text> </level> </level> </level> </level> <level label="c"> <text>Notwithstanding the adoption of the Agreement under this section, unless and until further legislation is enacted by the General Assembly to implement necessary changes to bring the State in compliance with the Agreement:</text> <level label="1"> <text>no provision of the Agreement in whole or in part invalidates or amends any provision of the law of this State;</text> </level> <level label="2"> <text>adoption of the Agreement does not amend or modify any other provision of this title or other law of this State; and</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="d"> <level label="1"> <level label="i"> <text>The Agreement adopted by this section binds and inures only to the benefit of this State and the other member states.</text> </level> <level label="ii"> <text>No person, other than a member state, is an intended beneficiary of the Agreement.</text> </level> <level label="iii"> <text>Any benefit to a person other than a state must be established by the law of this State and the other member states and not by the terms of the Agreement.</text> </level> </level> <level label="2"> <level label="i"> <text>No person shall have any cause of action or defense under the Agreement or by virtue of the State’s adoption of the Agreement.</text> </level> <level label="ii"> <text>No person may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, or other instrumentality of this State, or any political subdivision of this State, on the ground that the action or inaction is inconsistent with the Agreement.</text> </level> </level> <level label="3"> <text>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.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-108" title_number="11" title_name="Sales and Use Tax" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>The sale or recharge of a prepaid telephone calling arrangement is taxable in the State if:</text> <level label="1"> <text>the sale or recharge takes place at the vendor’s place of business located in the State;</text> </level> <level label="2"> <text>the buyer’s shipping address is in the State; or</text> </level> <level label="3"> <text>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.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-109" title_number="11" title_name="Sales and Use Tax" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-1A-01" title_number="11" title_name="Sales and Use Tax" subtitle_number="1A" subtitle_name="Special Use Tax on Certain Electricity"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“On-site generated electricity” means electricity that is generated at a facility:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>that is operated by the owner or a designee of the owner.</text> </level> </level> <level label="2"> <text>“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.</text> </level> </level> <level label="c"> <text>“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.</text> </level> <level label="d"> <text>“Public service company” has the meaning stated in § 8-401 of this article.</text> </level> <level label="e"> <text>“Special use tax on electricity” means the tax imposed under this subtitle.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-1A-02" title_number="11" title_name="Sales and Use Tax" subtitle_number="1A" subtitle_name="Special Use Tax on Certain Electricity"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>The special use tax on electricity does not apply to the use of:</text> <level label="1"> <text>electricity that is:</text> <level label="i"> <text>used for residential purposes; or</text> </level> <level label="ii"> <text>used exclusively for emergency back-up generation; or</text> </level> </level> <level label="2"> <text>on-site generated electricity.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-1A-03" title_number="11" title_name="Sales and Use Tax" subtitle_number="1A" subtitle_name="Special Use Tax on Certain Electricity"> <text>The rate of the special use tax on electricity is 0.062 cents for each kilowatt hour of electricity that is subject to the tax.</text> </section> <section article="gtg" article_name="Tax - General" number="11-1A-04" title_number="11" title_name="Sales and Use Tax" subtitle_number="1A" subtitle_name="Special Use Tax on Certain Electricity"> <text>The exemptions provided under Subtitle 2 of this title do not apply to the special use tax on electricity.</text> </section> <section article="gtg" article_name="Tax - General" number="11-1A-05" title_number="11" title_name="Sales and Use Tax" subtitle_number="1A" subtitle_name="Special Use Tax on Certain Electricity"> <text>In addition to any information required under Subtitle 5 of this title:</text> <level label="1"> <text>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:</text> <level label="i"> <text>the kilowatt hours of electricity the use of which became subject to the special use tax on electricity; and</text> </level> <level label="ii"> <text>the special use tax on electricity that is due; and</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>the kilowatt hours of electricity that is subject to the special use tax on electricity; and</text> </level> <level label="ii"> <text>the special use tax on electricity that is due.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-1A-06" title_number="11" title_name="Sales and Use Tax" subtitle_number="1A" subtitle_name="Special Use Tax on Certain Electricity"> <text>The Comptroller shall adopt regulations to carry out the provisions of this subtitle.</text> </section> <section article="gtg" article_name="Tax - General" number="11-201" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>The sales and use tax does not apply to a sale of the following items for an agricultural purpose:</text> <level label="1"> <text>livestock;</text> </level> <level label="2"> <text>feed or bedding for livestock;</text> </level> <level label="3"> <text>seed, fertilizer, fungicide, herbicide, or insecticide;</text> </level> <level label="4"> <text>baler twine or wire;</text> </level> <level label="5"> <text>fuel for use in farm equipment or a farm tractor, as defined in §§ 11–120 and 11–121 of the Transportation Article; and</text> </level> <level label="6"> <text>if bought by a farmer:</text> <level label="i"> <text>a container to transport farm products that the farmer raises to market;</text> </level> <level label="ii"> <text>a farm vehicle, as defined in § 13–911(c) of the Transportation Article, when used in farming;</text> </level> <level label="iii"> <text>a milking machine, when used in farming;</text> </level> <level label="iv"> <text>fabrication, processing, or service, by a sawmill, of wood products for farm use in which the farmer retains title; and</text> </level> <level label="v"> <text>farm equipment when used to:</text> <level label="1"> <text>raise livestock;</text> </level> <level label="2"> <text>prepare, irrigate, or tend the soil; or</text> </level> <level label="3"> <text>plant, service, harvest, store, clean, dry, or transport seeds or crops.</text> </level> </level> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-201.1" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>In this section, “bulk vending machine” means a vending machine that:</text> <level label="1"> <text>contains unsorted merchandise; and</text> </level> <level label="2"> <text>on insertion of a coin, dispenses the unsorted merchandise in approximately equal portions at random and without selection by the customer.</text> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-204" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>The sales and use tax does not apply to:</text> <level label="1"> <text>a sale to a cemetery company, as described in § 501(c)(13) of the Internal Revenue Code in effect on July 1, 1987;</text> </level> <level label="2"> <text>a sale to a credit union organized under the laws of the State or of the United States;</text> </level> <level label="3"> <text>a sale to a nonprofit organization made to carry on its work, if the organization:</text> <level label="i"> <level label="1"> <text>is located in the State;</text> </level> <level label="2"> <text>is located in an adjacent jurisdiction and provides its services within the State on a routine and regular basis; or</text> </level> <level label="3"> <text>is located in an adjacent jurisdiction whose law:</text> </level> <level label="A"> <text>does not impose a sales or use tax on a sale to a nonprofit organization made to carry on its work; or</text> </level> <level label="B"> <text>contains a reciprocal exemption from sales and use tax for sales to nonprofit organizations located in adjacent jurisdictions similar to the exemption allowed under this subsection;</text> </level> </level> <level label="ii"> <text>is a charitable, educational, or religious organization;</text> </level> <level label="iii"> <text>is not the United States; and</text> </level> <level label="iv"> <text>except for the American National Red Cross, is not a unit or instrumentality of the United States;</text> </level> </level> <level label="4"> <text>a sale, not exceeding $500, to a nonprofit incorporated senior citizens’ organization made to carry on its work, if the organization:</text> <level label="i"> <text>is located in the State; and</text> </level> <level label="ii"> <text>receives funding from the State or a political subdivision of the State;</text> </level> </level> <level label="5"> <text>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;</text> </level> <level label="6"> <text>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;</text> </level> <level label="7"> <text>a sale to a nonprofit organization made to carry on its work, if the organization:</text> <level label="i"> <text>is qualified as tax exempt under § 501(c)(4) of the Internal Revenue Code; and</text> </level> <level label="ii"> <text>is engaged primarily in providing a program to render its best efforts to contain, clean up, and otherwise mitigate spills of oil or other substances occurring in United States coastal and tidal waters; or</text> </level> </level> <level label="8"> <text>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.</text> </level> </level> <level label="b"> <text>The sales and use tax does not apply to a sale by:</text> <level label="1"> <text>a bona fide church or religious organization, if the sale is made for the general purposes of the church or organization;</text> </level> <level label="2"> <text>a gift shop at a mental hospital that the Maryland Department of Health operates;</text> </level> <level label="3"> <text>a hospital thrift shop that:</text> <level label="i"> <text>is operated by all volunteer staff;</text> </level> <level label="ii"> <text>sells only donated articles;</text> </level> <level label="iii"> <text>contributes the profits from sales to the hospital with which the shop is associated; and</text> </level> <level label="iv"> <text>is not operated in conjunction with a gift shop or another retail establishment;</text> </level> </level> <level label="4"> <text>a vending facility operated under the Maryland Vending Program for the Blind if:</text> <level label="i"> <text>the facility is located on property held or acquired by or for the use of the United States for any military or naval purpose; and</text> </level> <level label="ii"> <text>a post exchange or other tax–exempt concession is located and operated on the same property;</text> </level> </level> <level label="5"> <text>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;</text> </level> <level label="6"> <text>a parent–teacher organization or other organization within an elementary or secondary school in the State or within a school system in the State;</text> </level> <level label="7"> <text>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:</text> <level label="i"> <text>the sale is made at an auction sale; and</text> </level> <level label="ii"> <text>the proceeds of the sale are used to carry on the exempt purposes of the church or organization;</text> </level> </level> <level label="8"> <text>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</text> </level> <level label="9"> <text>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.</text> </level> </level> <level label="c"> <text>To qualify as an organization to which a sale is exempt under subsection (a)(3) or (5) of this section, the organization shall file an application for an exemption certificate with the Comptroller.</text> </level> <level label="d"> <text>The Comptroller may treat the possession of an effective determination letter of status under § 501(c)(3) or (13) of the Internal Revenue Code from the Internal Revenue Service as evidence that an organization qualifies under subsection (a)(3) or (5) or (1) of this section, respectively.</text> </level> <level label="e"> <text>For a sale described under subsection (b)(7) of this section that is not otherwise exempt under this section, only that part of the sale price that qualifies for a deduction under the federal income tax as a charitable contribution under the regulations and guidelines of the Internal Revenue Service is exempt from the sales and use tax under this section.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-205" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>The sales and use tax does not apply to a sale of:</text> <level label="1"> <text>a Maryland State flag;</text> </level> <level label="2"> <text>a United States flag; or</text> </level> <level label="3"> <text>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.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-206" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Facility for food consumption” does not include parking spaces for vehicles as the sole accommodation.</text> </level> <level label="3"> <level label="i"> <text>“Food” means food for human consumption.</text> </level> <level label="ii"> <text>“Food” includes the following foods and their products:</text> <level label="1"> <text>beverages, including coffee, coffee substitutes, cocoa, fruit juices, and tea;</text> </level> <level label="2"> <text>condiments;</text> </level> <level label="3"> <text>eggs;</text> </level> <level label="4"> <text>fish, meat, and poultry;</text> </level> <level label="5"> <text>fruit, grain, and vegetables;</text> </level> <level label="6"> <text>milk, including ice cream; and</text> </level> <level label="7"> <text>sugar.</text> </level> </level> <level label="iii"> <text>“Food” does not include:</text> <level label="1"> <text>an alcoholic beverage as defined in § 5–101 of this article;</text> </level> <level label="2"> <text>a soft drink or carbonated beverage;</text> </level> <level label="3"> <text>a cannabinoid beverage as defined in § 36–101 of the Alcoholic Beverages and Cannabis Article; or</text> </level> <level label="4"> <text>candy or confectionery.</text> </level> </level> </level> <level label="4"> <text>“Food for immediate consumption” means:</text> <level label="i"> <text>food obtained from a salad, soup, or dessert bar;</text> </level> <level label="ii"> <text>party platters;</text> </level> <level label="iii"> <text>heated food;</text> </level> <level label="iv"> <text>sandwiches suitable for immediate consumption; or</text> </level> <level label="v"> <text>ice cream, frozen yogurt, and other frozen desserts, sold in containers of less than 1 pint.</text> </level> </level> <level label="5"> <text>“Premises” includes any building, grounds, parking lot, or other area that:</text> <level label="i"> <text>a food vendor owns or controls; or</text> </level> <level label="ii"> <text>another person makes available primarily for the use of the patrons of 1 or more food vendors.</text> </level> </level> <level label="6"> <text>“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.</text> </level> </level> <level label="b"> <text>The sales and use tax does not apply to a sale of food stamp eligible food, as defined in 7 U.S.C. § 2012, bought with a food coupon issued in accordance with 7 U.S.C. § 2016.</text> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The exemption under paragraph (1) of this subsection does not apply to:</text> <level label="i"> <text>food that the vendor serves for consumption on the premises of the buyer or of a third party; or</text> </level> <level label="ii"> <text>food for immediate consumption.</text> </level> </level> </level> <level label="d"> <text>The sales and use tax does not apply to:</text> <level label="1"> <text>a sale of food:</text> <level label="i"> <text>to patients in a hospital when the food charge is included in the regular room rate;</text> </level> <level label="ii"> <text>by a church or religious organization;</text> </level> <level label="iii"> <text>by a school other than an institution of postsecondary education, including sales at a school by a food concessionaire that is under contract with the school or with its designated contract agent, but not including sales at events that are not sponsored by the school or are not educationally related;</text> </level> <level label="iv"> <text>to students at an institution of postsecondary education if the food charge is for a meal plan or is included in the regular charge for room and board; or</text> </level> <level label="v"> <text>by a nonprofit food vendor if there are no facilities for food consumption on the premises, unless the food is sold within an enclosure for which a charge is made for admission;</text> </level> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>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</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="e"> <text>The sales and use tax does not apply to a sale of food or any beverage in a vehicle that is being operated in the State while in the course of interstate commerce.</text> </level> <level label="f"> <text>The sales and use tax does not apply to a sale for consumption off the premises of:</text> <level label="1"> <text>crabs; or</text> </level> <level label="2"> <text>seafood that is not prepared for immediate consumption.</text> </level> </level> <level label="g"> <text>The sales and use tax does not apply to the sale through a vending machine of milk, fresh fruit, fresh vegetables, or yogurt.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-207" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>The sales and use tax does not apply to:</text> <level label="1"> <text>a sale of electricity, steam, or artificial or natural gas for use in residential condominiums;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>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:</text> <level label="i"> <text>ownership of units is restricted by age;</text> </level> <level label="ii"> <text>any unit is served by an individual meter; and</text> </level> <level label="iii"> <text>on or before July 1, 1979, at least 3 bulk meters served the community; or</text> </level> </level> <level label="5"> <text>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.</text> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-208" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>The sales and use tax does not apply to:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>a rental of equipment or machinery that:</text> <level label="i"> <text>is owned by the Maryland Port Administration; and</text> </level> <level label="ii"> <text>is used only to load and unload ocean going vessels.</text> </level> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>The sales and use tax does not apply:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>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.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-209" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>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:</text> <level label="1"> <text>the sale price is less than $1,000; and</text> </level> <level label="2"> <text>the sale is not made through an auctioneer or a dealer.</text> </level> </level> <level label="b"> <text>The sales and use tax does not apply to a distribution of tangible personal property, a digital code, or a digital product by:</text> <level label="1"> <text>a corporation or joint–stock company to its stockholders as a liquidating distribution;</text> </level> <level label="2"> <text>a partnership to a partner; or</text> </level> <level label="3"> <text>a limited liability company to a member.</text> </level> </level> <level label="c"> <level label="1"> <text>The sales and use tax does not apply to a transfer of tangible personal property, a digital code, or a digital product:</text> <level label="i"> <text>under a reorganization within the meaning of § 368(a) of the Internal Revenue Code;</text> </level> <level label="ii"> <text>on organization of a corporation or joint–stock company, to the corporation or company principally in consideration for the issuance of its stock;</text> </level> <level label="iii"> <text>to a partnership only as a contribution to its capital or in consideration for a partnership interest in the partnership; or</text> </level> <level label="iv"> <text>to a limited liability company only as a capital contribution or in consideration for an interest in the limited liability company.</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>principally in consideration for the issuance of stock of a corporation or joint–stock company;</text> </level> <level label="ii"> <text>only as a contribution to the capital of a partnership or in consideration for a partnership interest; or</text> </level> <level label="iii"> <text>only as a capital contribution to a limited liability company or in consideration for an interest in a limited liability company.</text> </level> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-210" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>The sales and use tax does not apply to a sale of:</text> <level label="1"> <text>machinery or equipment used to produce bituminous concrete; or</text> </level> <level label="2"> <text>electricity, fuel, and other utilities used to operate that machinery or equipment.</text> </level> </level> <level label="b"> <text>The sales and use tax does not apply to a sale of:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="c"> <text>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:</text> <level label="1"> <text>the taxable price of each piece of equipment is at least $2,000; and</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <text>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:</text> <level label="1"> <text>that enables a television or radio station to originate and broadcast or to receive and broadcast digital signals; and</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="e"> <text>The sales and use tax does not apply to the sale of:</text> <level label="1"> <text>machinery or equipment used directly and predominantly to produce Energy Star windows or Energy Star entry doors for residential real property; or</text> </level> <level label="2"> <text>electricity, fuel, and other utilities used to operate that machinery or equipment.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-211" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>The sales and use tax does not apply to:</text> <level label="1"> <text>a sale, to or by a physician or hospital, of drugs or medical supplies;</text> </level> <level label="2"> <text>a sale of medicine;</text> </level> <level label="3"> <text>a sale of disposable medical supplies; or</text> </level> <level label="4"> <text>a sale of a patient’s medical records to the patient or the patient’s representative.</text> </level> </level> <level label="b"> <text>The sales and use tax does not apply to a sale of:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>a decoder for captioned television programs for use by a hearing–impaired individual;</text> </level> <level label="4"> <text>a telecommunications device that is adapted specifically for hearing–impaired individuals and is:</text> <level label="i"> <text>a device that changes digital codes into tones for transmission through telephone lines;</text> </level> <level label="ii"> <text>a flashing signal device; or</text> </level> <level label="iii"> <text>a telebraille machine;</text> </level> </level> <level label="5"> <text>an artificial eye, hearing device, or limb;</text> </level> <level label="6"> <text>a colostomy or ileostomy appliance;</text> </level> <level label="7"> <text>corrective eyeglasses;</text> </level> <level label="8"> <text>an orthopedic or surgical appliance prescribed by a physician and designed to be worn on the person of the user;</text> </level> <level label="9"> <text>a battery for an artificial hearing device or larynx, transcutaneous nerve stimulator, or electrically powered wheelchair;</text> </level> <level label="10"> <level label="i"> <text>a custom–made earmold for an artificial hearing device;</text> </level> <level label="ii"> <text>a battery charger for an artificial hearing device; or</text> </level> <level label="iii"> <text>a receiver for an artificial hearing device;</text> </level> </level> <level label="11"> <text>crutches;</text> </level> <level label="12"> <text>a wheelchair;</text> </level> <level label="13"> <text>a hospital bed;</text> </level> <level label="14"> <text>an oxygen tent;</text> </level> <level label="15"> <text>any other sickroom equipment that the Comptroller defines by regulations or medical equipment that:</text> <level label="i"> <text>can withstand repeated use;</text> </level> <level label="ii"> <text>is used exclusively to serve a medical purpose;</text> </level> <level label="iii"> <text>is not useful to a person in the absence of illness or injury; and</text> </level> <level label="iv"> <text>is for use in the home or on the individual’s person;</text> </level> </level> <level label="16"> <text>tangible personal property for installation in a motor vehicle:</text> <level label="i"> <text>to provide access to the motor vehicle by an individual with a disability; or</text> </level> <level label="ii"> <text>to permit an individual with a disability to operate the motor vehicle;</text> </level> </level> <level label="17"> <text>a wig or hairpiece needed as a result of documented medical or surgical treatment;</text> </level> <level label="18"> <text>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;</text> </level> <level label="19"> <text>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;</text> </level> <level label="20"> <text>baby bottles or baby bottle nipples;</text> </level> <level label="21"> <text>a medical or clinical thermometer;</text> </level> <level label="22"> <text>a pulse oximeter;</text> </level> <level label="23"> <text>a blood pressure monitor;</text> </level> <level label="24"> <text>an N95, China KN95, Japan DS, Korea 1st Class, AS/NZS P2, or European FFP2 filtering facepiece respirator; or</text> </level> <level label="25"> <text>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.</text> </level> </level> <level label="c"> <text>The sales and use tax does not apply to a sale of:</text> <level label="1"> <text>baby oil or baby powder;</text> </level> <level label="2"> <text>diapers;</text> </level> <level label="3"> <text>diaper rash cream;</text> </level> <level label="4"> <text>baby wipes;</text> </level> <level label="5"> <text>toothbrushes, toothpaste, tooth powders, mouthwash, dental floss, or other similar oral hygiene products; or</text> </level> <level label="6"> <text>sanitary pads, tampons, menstrual sponges, menstrual cups, or other similar feminine hygiene products.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-212" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>The sales and use tax does not apply to a sale of:</text> <level label="1"> <text>fabrication, processing, or service, by a sawmill, of wood products for mine use in which the miner retains title; or</text> </level> <level label="2"> <text>diesel fuel for use in reclamation of land that has been mined for coal by strip or open-pit mining.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-213" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>Except for the first retail sale of the manufactured home, the sales and use tax does not apply to a sale of a manufactured home, as defined in § 12-301(g) of the Public Safety Article.</text> </section> <section article="gtg" article_name="Tax - General" number="11-214" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>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:</text> <level label="1"> <text>a nonresident:</text> <level label="i"> <text>acquires before the property, digital code, digital product, or service enters the State; and</text> </level> <level label="ii"> <text>uses:</text> <level label="1"> <text>for personal enjoyment or use or for a use that the Comptroller specifies by regulation, other than for a business purpose; or</text> </level> <level label="2"> <text>in a presentation or in conjunction with a presentation of an exhibit, show, sporting event, or other public performance or display; and</text> </level> </level> </level> <level label="2"> <text>does not remain in the State for more than 30 days.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-214.1" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>In this section:</text> <level label="1"> <text>“precious metal bullion or coins” means:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>except as provided in paragraph (2) of this subsection, monetized bullion, coins, or other forms of money that:</text> <level label="1"> <text>are manufactured from precious metals; and</text> </level> <level label="2"> <text>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</text> </level> </level> </level> <level label="2"> <text>“precious metal bullion or coins” does not include jewelry or a work of art made of precious metal bullion or coins.</text> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-215" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>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:</text> <level label="i"> <text>to a person engaged in the printing of tangible personal property for sale; and</text> </level> <level label="ii"> <text>for direct use by the person to produce that property for sale.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <level label="1"> <text>The sales and use tax does not apply to the printing and sale of newspapers that are distributed by the publisher at no charge.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>The sales and use tax does not apply to:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-216" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>The sales and use tax does not apply to:</text> <level label="1"> <text>a sale for use of tangible personal property, a digital code, or a digital product that:</text> <level label="i"> <text>is bought outside this State;</text> </level> <level label="ii"> <text>is intended solely for use in another state; and</text> </level> <level label="iii"> <text>is stored in this State pending shipment to another state;</text> </level> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="b"> <text>The sales and use tax shall be paid:</text> <level label="1"> <text>on a sale under subsection (a)(1) of this section, when the tangible personal property is imported or stored in the State; and</text> </level> <level label="2"> <text>on a sale under subsection (a)(2) of this section, when the sale is made.</text> </level> </level> <level label="c"> <text>A person who pays the sales and use tax under subsection (b) of this section may obtain the exemption by:</text> <level label="1"> <text>filing a claim for refund with the Comptroller when the property is removed from the State; and</text> </level> <level label="2"> <text>providing the Comptroller with the evidence that the Comptroller requires by regulation, including:</text> <level label="i"> <text>evidence of use or removal of the property from the State; and</text> </level> <level label="ii"> <text>satisfactory proof of entitlement to exemption in another state.</text> </level> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-217" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section, “research and development” means:</text> <level label="i"> <text>basic and applied research in the sciences and engineering; and</text> </level> <level label="ii"> <text>the design, development, and governmentally required pre-market testing of prototypes, products, and processes.</text> </level> </level> <level label="2"> <text>“Research and development” does not include:</text> <level label="i"> <text>market research;</text> </level> <level label="ii"> <text>research in the social sciences or psychology and other nontechnical activities;</text> </level> <level label="iii"> <text>routine product testing;</text> </level> <level label="iv"> <text>sales services; or</text> </level> <level label="v"> <text>technical and nontechnical services.</text> </level> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-218" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>The sales and use tax does not apply to a sale of:</text> <level label="1"> <text>a clam or oyster rake, crab bait, crab or eel pot, or fish net;</text> </level> <level label="2"> <text>a dredge, handscrape, or hand or patent tong; or</text> </level> <level label="3"> <text>fuel or a repair part for a commercial fishing vessel or for a vessel otherwise used for commercial purposes.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-219" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>The sales and use tax does not apply to a personal, professional, or insurance service that:</text> <level label="1"> <text>is not a taxable service; and</text> </level> <level label="2"> <text>involves a sale as an inconsequential element for which no separate charge is made.</text> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>The sales and use tax does not apply to the use of a taxable service obtained by using a prepaid telephone calling arrangement.</text> </level> <level label="d"> <level label="1"> <level label="i"> <text>In this subsection the following words have the meanings indicated.</text> </level> <level label="ii"> <text>“Cloud computing” means a service that enables on–demand, self–service network access to a shared pool of configurable computer resources, including data storage, analytics, commerce, streaming, e–mail, document sharing, and document editing.</text> </level> <level label="iii"> <text>“Qualified cybersecurity business” means an entity organized for profit that is engaged primarily in the development of innovative proprietary cybersecurity technology or the provision of cybersecurity services.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-220" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>The sales and use tax does not apply to a sale to the State or a political subdivision of the State.</text> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-221" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>The sales and use tax does not apply to:</text> <level label="1"> <text>a sale of an admission by a person whose gross receipts from the sale are subject to the admissions and amusement tax;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>a sale of a motor fuel that is subject to the motor fuel tax or the motor carrier tax;</text> </level> <level label="4"> <text>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;</text> </level> <level label="5"> <text>a lease of a motor vehicle that is leased for a period of at least 1 year;</text> </level> <level label="6"> <text>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</text> </level> <level label="7"> <text>except for a rental, a sale of a vessel that is subject to the excise tax under § 8-716 of the Natural Resources Article.</text> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <text>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.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-222" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>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.</text> </section> <section article="gtg" article_name="Tax - General" number="11-223" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>The sales and use tax does not apply to a sale of:</text> <level label="1"> <text>a bus to a person who uses the bus only:</text> <level label="i"> <text>in the operation of the transportation system of a political subdivision of the State; and</text> </level> <level label="ii"> <text>for public transportation on regular schedules and between fixed termini, as defined in Title 11 of the Transportation Article; or</text> </level> </level> <level label="2"> <text>a transportation service.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-224" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>The sales and use tax does not apply to a sale of water that is delivered to the buyer through pipes or conduits.</text> </section> <section article="gtg" article_name="Tax - General" number="11-225" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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:</text> <level label="1"> <text>reproduced for sale; or</text> </level> <level label="2"> <text>incorporated in whole or in part into another computer program intended for sale.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-226" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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:</text> <level label="i"> <text>Energy Star product; or</text> </level> <level label="ii"> <text>solar water heater.</text> </level> </level> </level> <level label="b"> <text>The sales and use tax does not apply to the sale of a multifuel pellet stove designed to burn agricultural field corn.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-227" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“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.</text> </level> <level label="ii"> <text>“Film production activity” includes the production or postproduction of digital, animation, and multimedia projects.</text> </level> <level label="iii"> <text>“Film production activity” does not include:</text> <level label="1"> <text>production or postproduction of student films or noncommercial personal videos; or</text> </level> <level label="2"> <text>any activity not necessary to and undertaken directly and exclusively for the making of a master film, tape, or image.</text> </level> </level> </level> <level label="3"> <text>“Tangible personal property, a digital code, a digital product, or a taxable service used directly in connection with a film production activity” includes:</text> <level label="i"> <text>camera equipment and supplies;</text> </level> <level label="ii"> <text>film and tape;</text> </level> <level label="iii"> <text>lighting and stage equipment and supplies;</text> </level> <level label="iv"> <text>sound equipment and supplies;</text> </level> <level label="v"> <text>recording equipment and supplies;</text> </level> <level label="vi"> <text>costumes, wardrobes, and materials to construct them;</text> </level> <level label="vii"> <text>props, scenery, and materials to construct them;</text> </level> <level label="viii"> <text>design supplies and equipment;</text> </level> <level label="ix"> <text>drafting supplies and equipment;</text> </level> <level label="x"> <text>special effects supplies and equipment;</text> </level> <level label="xi"> <text>short–term vehicle rentals; and</text> </level> <level label="xii"> <text>fabrication, printing, or production of scripts, storyboards, costumes, wardrobes, props, scenery, or special effects.</text> </level> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-228" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>In this section, “accessory items” includes jewelry, watches, watchbands, handbags, handkerchiefs, umbrellas, scarves, ties, headbands, and belt buckles.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>the sale of any item of clothing or footwear, excluding accessory items, if the taxable price of the item of clothing or footwear is $100 or less; or</text> </level> <level label="ii"> <text>the first $40 of the taxable price of any backpack or bookbag.</text> </level> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-229" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>The sales and use tax does not apply to a sale of electricity, fuel, and other utilities used to operate the machinery or equipment used to produce snow for commercial purposes.</text> </section> <section article="gtg" article_name="Tax - General" number="11-230" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Geothermal equipment” means equipment that uses ground loop technology to heat and cool a structure.</text> </level> <level label="3"> <text>“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.</text> </level> <level label="4"> <level label="i"> <text>“Solar energy equipment” means equipment that uses solar energy to heat or cool a structure, generate electricity to be used in a structure or supplied to the electric grid, or provide hot water for use in a structure.</text> </level> <level label="ii"> <text>“Solar energy equipment” does not include equipment that is part of a nonsolar energy system or that uses any type of recreational facility or equipment as a storage medium.</text> </level> </level> </level> <level label="b"> <text>The sales and use tax does not apply to a sale of geothermal equipment, residential wind energy equipment, or solar energy equipment.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-231" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>The sales and use tax does not apply to the sale of a right to occupy a room or lodgings as a transient guest at a dormitory or other lodging facility that:</text> <level label="1"> <text>is operated solely in support of a corporate or any other headquarters, training, conference, or awards facility or campus;</text> </level> <level label="2"> <text>provides lodging solely for employees, contractors, vendors, and other invitees of the corporation that owns the dormitory or lodging facility; and</text> </level> <level label="3"> <text>does not offer lodging services to the general public.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-232" effective_note="EFFECTIVE UNTIL JUNE 30, 2036 PER CHAPTERS 17 AND 18 OF 2023" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Construction material” means an item of tangible personal property that is used to construct or renovate a building, a structure, or an improvement on land and that typically loses its separate identity as personal property once incorporated into the real property.</text> </level> <level label="ii"> <text>“Construction material” includes building materials, building systems equipment, landscaping materials, and supplies.</text> </level> </level> <level label="3"> <text>“Target redevelopment area” means any real property owned or leased by a person in Baltimore County that:</text> <level label="i"> <text>was previously owned at any time by Bethlehem Steel Corporation, or any of its subsidiaries; and</text> </level> <level label="ii"> <text>was, as of January 1, 2016, the subject of an approved application for participation in the Voluntary Cleanup Program under Title 7, Subtitle 5 of the Environment Article.</text> </level> </level> <level label="4"> <text>“Warehousing equipment” means equipment used for material handling and storage, including racking systems, conveying systems, and computer systems and equipment.</text> </level> </level> <level label="b"> <text>The sales and use tax does not apply to a sale of construction material or warehousing equipment, if:</text> <level label="1"> <text>the material or equipment is purchased by a person solely for use in a target redevelopment area; and</text> </level> <level label="2"> <text>the buyer provides the vendor with evidence of eligibility for the exemption issued by the Comptroller.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-233" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>The sales and use tax does not apply to a sale of a light rail transit vehicle or related equipment if the vehicle will be used to provide transit service on the Purple Line in Montgomery County and Prince George’s County.</text> </section> <section article="gtg" article_name="Tax - General" number="11-235" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>The sales and use tax does not apply to the cleaning of a commercial or industrial building if the building is owned by a common ownership community or retirement community and used for:</text> <level label="1"> <text>classrooms;</text> </level> <level label="2"> <text>dining;</text> </level> <level label="3"> <text>exercise;</text> </level> <level label="4"> <text>food preparation or cooking;</text> </level> <level label="5"> <text>meetings or gatherings;</text> </level> <level label="6"> <text>offices used by the common ownership community for management of the community;</text> </level> <level label="7"> <text>recreation;</text> </level> <level label="8"> <text>security;</text> </level> <level label="9"> <text>sports;</text> </level> <level label="10"> <text>storage; or</text> </level> <level label="11"> <text>any other common use.</text> </level> </level> <level label="b"> <text>The exemption under subsection (a) of this section does not apply to the cleaning of a commercial or industrial building or the proportionate share of the building that is used for a purpose that requires the collection of the sales and use tax under this title.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-236" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Construction material” means an item of tangible personal property that is used to construct or renovate a building, a structure, or an improvement on land and that typically loses its separate identity as personal property once incorporated into the real property.</text> </level> <level label="ii"> <text>“Construction material” includes building materials, building systems equipment, landscaping materials, and supplies.</text> </level> </level> <level label="3"> <text>“Pimlico site” and “training facility site” have the meanings stated in § 10–601 of the Economic Development Article.</text> </level> </level> <level label="b"> <text>The sales and use tax does not apply to a sale of construction material, if:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>the sale is made before January 1, 2029; and</text> </level> <level label="3"> <text>the buyer provides the vendor with eligibility of the exemption issued by the Comptroller.</text> </level> </level> <level label="c"> <text>The Comptroller shall adopt regulations to implement this section.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-237" effective_note="EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 957 AND 958 OF 2024" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>The sales and use tax does not apply to the sale of materials, parts, or equipment used to repair, maintain, or upgrade aircraft or the avionics systems of aircraft if the materials, parts, or equipment are installed on an aircraft that:</text> <level label="1"> <text>has a maximum gross takeoff weight of less than 12,500 pounds; or</text> </level> <level label="2"> <level label="i"> <text>has a maximum gross takeoff weight of 12,500 pounds or more; and</text> </level> <level label="ii"> <text>is primarily used in interstate or foreign commerce.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-238" effective_note="EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTER 639 OF 2020" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Construction material” means an item of tangible personal property that is used to construct or renovate a building, a structure, or an improvement on land and that typically loses its separate identity as personal property once incorporated into the real property.</text> </level> <level label="ii"> <text>“Construction material” includes building materials, building systems equipment, landscaping materials, and supplies.</text> </level> </level> <level label="3"> <text>“Qualified opportunity zone” means any real property owned or leased by a person in Baltimore County that:</text> <level label="i"> <text>as of January 1, 2020, was designated as:</text> <level label="1"> <text>an enterprise zone under Title 5, Subtitle 7 of the Economic Development Article; and</text> </level> <level label="2"> <text>an opportunity zone under § 1400Z–1 of the Internal Revenue Code; and</text> </level> </level> <level label="ii"> <text>was previously owned at any time by the United States or its subsidiaries, successors, or assigns.</text> </level> </level> <level label="4"> <text>“Target redevelopment area” means any real property owned or leased by a person in Washington County that:</text> <level label="i"> <text>as of January 1, 2020, was designated as:</text> <level label="1"> <text>an enterprise zone under Title 5, Subtitle 7 of the Economic Development Article; and</text> </level> <level label="2"> <text>was previously owned at any time by CSX Railroad or its subsidiaries, successors, or assigns; or</text> </level> </level> <level label="ii"> <text>was previously owned at any time by the United States or its subsidiaries, successors, or assigns.</text> </level> </level> <level label="5"> <text>“Warehousing equipment” means equipment used for material handling and storage, including racking systems, conveying systems, and computer systems and equipment.</text> </level> </level> <level label="b"> <text>The sales and use tax does not apply to a sale of construction material or warehousing equipment if:</text> <level label="1"> <text>the material or equipment is purchased by a person solely for use in a qualified opportunity zone or target redevelopment area; and</text> </level> <level label="2"> <text>the buyer provides the vendor with evidence of eligibility for the exemption issued by the Comptroller.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-239" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“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.</text> </level> <level label="3"> <text>“Department” means the Department of Commerce.</text> </level> <level label="4"> <text>“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.</text> </level> <level label="5"> <level label="i"> <text>“Qualified data center” means a data center located in the State in which an individual or a corporation, within 3 years after submitting an application for the sales and use tax exemption under this section, has:</text> <level label="1"> <text>for a data center located within a Tier I area, invested at least $2,000,000 in qualified data center personal property and created at least five qualified positions; or</text> </level> <level label="2"> <text>for a data center located in any other area of the State, invested at least $5,000,000 in qualified data center personal property and created at least five qualified positions.</text> </level> </level> <level label="ii"> <text>“Qualified data center” includes:</text> <level label="1"> <text>a data center that is a co–located or hosting data center where equipment, space, and bandwidth are available to lease to multiple customers; and</text> </level> <level label="2"> <text>an enterprise data center owned and operated by the company it supports.</text> </level> </level> </level> <level label="6"> <level label="i"> <text>“Qualified data center personal property” means personal property purchased or leased to establish or operate a data center.</text> </level> <level label="ii"> <text>“Qualified data center personal property” includes:</text> <level label="1"> <text>computer equipment or enabling software used for the processing, storage, retrieval, or communication of data, including servers, routers, connections, and other enabling hardware used in the operation of that equipment;</text> </level> <level label="2"> <text>heating, ventilation, and air–conditioning and mechanical systems, including chillers, cooling towers, air–handling units, pumps, energy storage or energy efficiency technology, and other capital equipment used in the operation of that equipment; and</text> </level> <level label="3"> <text>equipment necessary for the generation, transformation, transmission, distribution, or management of electricity, including exterior substations, generators, transformers, unit substations, uninterruptible power supply systems, batteries, power distribution units, remote power panels, and any other capital equipment necessary for these purposes.</text> </level> </level> </level> <level label="7"> <level label="i"> <text>“Qualified position” means a position that:</text> <level label="1"> <text>is a full–time position of indefinite duration;</text> </level> <level label="2"> <text>pays at least 150% of the State minimum wage;</text> </level> <level label="3"> <text>is newly created because a data center begins or expands in a single location in the State; and</text> </level> <level label="4"> <text>is filled.</text> </level> </level> <level label="ii"> <text>“Qualified position” does not include a position:</text> <level label="1"> <text>created if an employment function is shifted from an existing data center in the State to another data center of related ownership if the position is not a net new job in the State;</text> </level> <level label="2"> <text>created through a change in ownership of a trade or business;</text> </level> <level label="3"> <text>created through a consolidation, merger, or restructuring of a business entity if the position is not a net new job in the State;</text> </level> <level label="4"> <text>created if an employment function is contractually shifted from an existing business entity in the State to another business entity if the position is not a net new job in the State; or</text> </level> <level label="5"> <text>filled for a period of less than 12 months.</text> </level> </level> </level> <level label="8"> <text>“Tier I area” means:</text> <level label="i"> <text>a Tier I county as defined in § 1–101 of the Economic Development Article; or</text> </level> <level label="ii"> <text>an opportunity zone.</text> </level> </level> </level> <level label="b"> <text>The sales and use tax does not apply to the sale of qualified data center personal property for use at a qualified data center if the buyer provides the vendor with evidence of eligibility for the exemption issued by the Comptroller.</text> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The application must:</text> <level label="i"> <text>demonstrate that the applicant intends to meet the requirements of a qualified data center; and</text> </level> <level label="ii"> <text>include any information the Department requires to evidence the capacity and intention of the applicant to fulfill the commitments set forth in the applicant’s application.</text> </level> </level> <level label="3"> <text>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.</text> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <level label="i"> <text>The certificate of eligibility issued under paragraph (2) of this subsection:</text> </level> <level label="1"> <text>must be renewed each year; and</text> </level> <level label="2"> <text>except as provided in subparagraph (ii) of this paragraph, may not be renewed for more than 10 consecutive years.</text> </level> <level label="ii"> <text>If the individual or corporation invests at least $250,000,000 in qualified data center personal property, the certificate of eligibility may be renewed for up to 20 consecutive years.</text> </level> </level> </level> <level label="e"> <text>For at least 3 years after the termination of a certificate issued under subsection (d) of this section, each individual or corporation that receives the certificate shall:</text> <level label="1"> <text>maintain a record of:</text> <level label="i"> <text>the amount of sales and use tax that was not paid as a result of the certificate;</text> </level> <level label="ii"> <text>the number of qualified positions created; and</text> </level> <level label="iii"> <text>the investment in qualified data center personal property; and</text> </level> </level> <level label="2"> <text>allow the Department to inspect the records described in item (1) of this subsection.</text> </level> </level> <level label="f"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The revocation may be in full or in part as the Department may determine.</text> </level> <level label="3"> <text>The individual or corporation shall have an opportunity to appeal any revocation to the Department before notification of the Comptroller.</text> </level> <level label="4"> <text>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.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-240" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <text>In this section:</text> <level label="1"> <text>“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</text> </level> <level label="2"> <text>“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.</text> </level> </level> <level label="b"> <text>The sales and use tax does not apply to the sale of materials, equipment, or supplies to a licensed caterer if the materials, equipment, or supplies are:</text> <level label="1"> <text>to be used by the caterer to perform a contract for catering services; and</text> </level> <level label="2"> <level label="i"> <text>intended for resale by the caterer; and</text> </level> <level label="ii"> <text>to be used directly or predominantly by the caterer in performing a catering contract that includes the provision of food and beverages.</text> </level> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-241" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Construction material” means an item of tangible personal property that is used to construct or renovate a building, a structure, or an improvement on land and that typically loses its separate identity as personal property once incorporated into the real property.</text> </level> <level label="ii"> <text>“Construction material” includes building materials, building systems equipment, landscaping materials, and supplies.</text> </level> </level> <level label="3"> <text>“Public school facility” has the meaning stated in § 10–601 of the Economic Development Article.</text> </level> </level> <level label="b"> <text>The sales and use tax does not apply to a sale of construction material if:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>the sale is made on or after June 1, 2020; and</text> </level> <level label="3"> <text>the buyer provides the vendor with evidence of eligibility for the exemption issued by the Comptroller.</text> </level> </level> <level label="c"> <text>The Comptroller shall adopt regulations to implement this section.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-242" effective_note="EFFECTIVE UNTIL JUNE 30, 2031 PER CHAPTERS 281 AND 282 OF 2021" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Construction material” means an item of tangible personal property that:</text> <level label="1"> <text>is used to construct or renovate:</text> </level> <level label="A"> <text>a building;</text> </level> <level label="B"> <text>a structure;</text> </level> <level label="C"> <text>an improvement on land; or</text> </level> <level label="D"> <text>infrastructure, including water, sewer, and other utility systems; and</text> </level> <level label="2"> <text>typically loses its separate identity as personal property once incorporated into the real property.</text> </level> </level> <level label="ii"> <text>“Construction material” includes building materials, building systems equipment, landscaping materials, and supplies.</text> </level> </level> <level label="3"> <text>“Federal facilities redevelopment area” means any real property in Cecil County that:</text> <level label="i"> <text>was previously owned at any time by the federal government;</text> </level> <level label="ii"> <text>was transferred from the federal government to the State or to an entity established under Title 11, Subtitle 4 of the Economic Development Article; and</text> </level> <level label="iii"> <text>is entirely under the environmental oversight and management of:</text> <level label="1"> <text>the State Hazardous Substance Response Plan under Title 7, Subtitle 2 of the Environment Article; or</text> </level> <level label="2"> <text>the Voluntary Cleanup Program under Title 7, Subtitle 5 of the Environment Article.</text> </level> </level> </level> <level label="4"> <text>“Warehousing equipment” means equipment used for material handling and storage, including racking systems, conveying systems, and computer systems and equipment.</text> </level> </level> <level label="b"> <text>The sales and use tax does not apply to a sale of construction material or warehousing equipment if:</text> <level label="1"> <text>the material or equipment is purchased by a person solely for use in a federal facilities redevelopment area; and</text> </level> <level label="2"> <text>the buyer provides the vendor with evidence of eligibility for the exemption issued by the Comptroller.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-243" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Construction material” means an item of tangible personal property that is used to construct or renovate a building, a structure, or an improvement on land and that typically loses its separate identity as personal property once incorporated into the real property.</text> </level> <level label="ii"> <text>“Construction material” includes building materials, building systems equipment, landscaping materials, and supplies.</text> </level> </level> <level label="3"> <text>“Hagerstown Multi–Use Sports and Events Facility” has the meaning stated in § 10–601 of the Economic Development Article.</text> </level> <level label="4"> <text>“Prince George’s County Blue Line Corridor facility” has the meaning stated in § 10–601 of the Economic Development Article.</text> </level> <level label="5"> <text>“Sports entertainment facility” has the meaning stated in § 10–601 of the Economic Development Article.</text> </level> </level> <level label="b"> <text>The sales and use tax does not apply to a sale of construction material if:</text> <level label="1"> <text>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:</text> <level label="i"> <text>the Hagerstown Multi–Use Sports and Events Facility that is managed by the Maryland Stadium Authority;</text> </level> <level label="ii"> <text>a sports entertainment facility; or</text> </level> <level label="iii"> <text>a Prince George’s County Blue Line Corridor facility;</text> </level> </level> <level label="2"> <text>the sale is made on or after October 1, 2021; and</text> </level> <level label="3"> <text>the buyer provides the vendor with evidence of eligibility for the exemption issued by the Comptroller.</text> </level> </level> <level label="c"> <text>The Comptroller shall adopt regulations to implement this section.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-244" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>The sales and use tax does not apply to a sale of an infant car seat. </text> </section> <section article="gtg" article_name="Tax - General" number="11-245" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <text>The sales and use tax does not apply to the sale of:</text> <level label="1"> <text>medical cannabis under Title 36 of the Alcoholic Beverages and Cannabis Article;</text> </level> <level label="2"> <text>cannabis between cannabis businesses that are licensed under Title 36 of the Alcoholic Beverages and Cannabis Article; or</text> </level> <level label="3"> <text>cannabis between a cannabis business licensed under Title 36 of the Alcoholic Beverages and Cannabis Article and a cannabis nursery registered under Title 36 of the Alcoholic Beverages and Cannabis Article.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-246" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Emerging technology development area” means the University of Maryland’s Discovery District located in Prince George’s County.</text> </level> <level label="3"> <text>“Qualified company” means a company that contracts with the University of Maryland’s Applied Research Laboratory for Intelligence and Security to develop systems and technologies to advance the use of quantum computers.</text> </level> </level> <level label="b"> <text>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:</text> <level label="1"> <text>to a qualified company located in an emerging technology development area made in connection with the work of the company; or</text> </level> <level label="2"> <text>by a qualified company located in an emerging technology development area.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-247" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section, “affiliated group” has the meaning stated under § 1504 of the Internal Revenue Code and includes related parties described under § 267(b)(10), (11), or (12) of the Internal Revenue Code.</text> </level> <level label="2"> <text>For the purposes of this subsection:</text> <level label="i"> <text>all references to a corporation or partnership under § 267(b)(10) of the Internal Revenue Code include an S corporation; and</text> </level> <level label="ii"> <text>all references to an S corporation under § 267(b)(10), (11), and (12) of the Internal Revenue Code include a qualified Subchapter S corporation subsidiary.</text> </level> </level> </level> <level label="b"> <text>The sales and use tax imposed on a taxable service described under § 11–101(m)(14) or (15) of this title or a digital code or digital product does not apply to a sale if both the vendor and the buyer are members of the same affiliated group.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-248" effective_note="EFFECTIVE UNTIL JUNE 30, 2036 PER CHAPTER 731 OF 2026" title_number="11" title_name="Sales and Use Tax" subtitle_number="2" subtitle_name="Exemptions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Construction material” means an item of tangible personal property that is used to construct or renovate a building, a structure, or an improvement on land and that typically loses its separate identity as personal property once incorporated into the real property.</text> </level> <level label="ii"> <text>“Construction material” includes building materials, building systems equipment, landscaping materials, and supplies.</text> </level> </level> <level label="3"> <text>“Target redevelopment area” means real property in Washington County that:</text> <level label="i"> <text>is commonly known as the Mount Aetna Technology Park and accessible from Robinwood Drive, Mount Aetna Road, and Yale Drive; and</text> </level> <level label="ii"> <text>is located in an Office, Research, and Industry zoning district.</text> </level> </level> <level label="4"> <text>“Warehousing equipment” means equipment used for material handling and storage, including racking systems, conveying systems, and computer systems and equipment.</text> </level> </level> <level label="b"> <text>The sales and use tax does not apply to a sale of construction material or warehousing equipment if:</text> <level label="1"> <text>the material or equipment is purchased by a person solely for use in a target redevelopment area; and</text> </level> <level label="2"> <text>the buyer provides the vendor with evidence of eligibility for the exemption issued by the Comptroller.</text> </level> </level> <level label="c"> <text>For at least 3 years after the date of a sale described under subsection (b) of this section, the buyer shall maintain a record of the amount of sales and use tax that was not paid as a result of the exemption under this section.</text> </level> <level label="d"> <level label="1"> <text>On or before October 1, 2027, and each October 1 thereafter, each buyer that receives a certificate issued in accordance with this section shall report to the Comptroller the amount of sales and use tax that was not paid as a result of the exemption under this section during the immediately preceding fiscal year.</text> </level> <level label="2"> <text>On or before December 31, 2027, and each December 31 thereafter, the Comptroller shall submit a report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the aggregate amount of sales and use tax that was not paid as a result of the exemption under this section during the immediately preceding fiscal year.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-301" title_number="11" title_name="Sales and Use Tax" subtitle_number="3" subtitle_name="Tax Computation and Statement"> <text>The sales and use tax is computed on:</text> <level label="1"> <text>the taxable price of each separate sale;</text> </level> <level label="2"> <text>if a combined sale is made, the combined taxable price of all retail sales on the same occasion by the same vendor to the same buyer; or</text> </level> <level label="3"> <text>if retail sales of tangible personal property or a taxable service are made through vending or other self–service machines, 94.5% of the gross receipts from the retail sales.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-302" title_number="11" title_name="Sales and Use Tax" subtitle_number="3" subtitle_name="Tax Computation and Statement"> <text>For each retail sale or sale for use other than a sale under § 11–405, § 11–406, or § 11–410 of this title, the sales and use tax shall be:</text> <level label="1"> <text>stated separately from the sale price; and</text> </level> <level label="2"> <text>shown separately from the sale price on any record of a sale:</text> <level label="i"> <text>at the time of the sale;</text> </level> <level label="ii"> <text>when the vendor issues evidence of the sale; or</text> </level> <level label="iii"> <text>when the vendor uses evidence of the sale.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-303" title_number="11" title_name="Sales and Use Tax" subtitle_number="3" subtitle_name="Tax Computation and Statement"> <level label="a"> <text>A buyer is allowed a depreciation allowance as an adjustment to taxable price if:</text> <level label="1"> <text>tangible personal property, a digital code, a digital product, or a taxable service is acquired before the tangible personal property, digital code, or digital product is brought into the State for use in the State or before the taxable service is used in the State; and</text> </level> <level label="2"> <text>the use first occurs in another state or federal jurisdiction.</text> </level> </level> <level label="b"> <text>The allowance under subsection (a) of this section for each full year that follows the date of purchase is 10% of the taxable price paid to acquire the tangible personal property, digital code, digital product, or taxable service.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-401" title_number="11" title_name="Sales and Use Tax" subtitle_number="4" subtitle_name="Tax Collection"> <level label="a"> <text>A vendor is a trustee for the State and is liable for the collection of the sales and use tax for and on account of the State.</text> </level> <level label="b"> <text>A vendor has the same rights to collect the sales and use tax from a buyer and the same rights regarding the nonpayment of the sales and use tax by a buyer that the vendor would have if the sales and use tax were a part of the purchase price of the tangible personal property, digital code, digital product, or taxable service at the time of the sale.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-402" title_number="11" title_name="Sales and Use Tax" subtitle_number="4" subtitle_name="Tax Collection"> <text>Subject to § 11–302 of this title, a vendor may:</text> <level label="1"> <text>assume or absorb all or any part of the sales and use tax imposed on a retail sale or use; and</text> </level> <level label="2"> <text>pay that sales and use tax on behalf of the buyer.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-403" future_version_removed="true" title_number="11" title_name="Sales and Use Tax" subtitle_number="4" subtitle_name="Tax Collection"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Affiliated group” has the meaning stated under § 1504 of the Internal Revenue Code and includes related parties described under § 267(b)(10), (11), or (12) of the Internal Revenue Code.</text> </level> <level label="3"> <text>“Pass–through entity” has the meaning stated in § 10–102.1 of this article.</text> </level> <level label="4"> <text>“Related pass–through entities” means one or more pass–through entities connected through ownership with a common parent pass–through entity but only if the common parent:</text> <level label="i"> <text>possesses at least 80% of the total voting power of the pass–through entity; and</text> </level> <level label="ii"> <text>has a value equal to at least 80% of the total value of the pass–through entity.</text> </level> </level> <level label="5"> <text>“Sales” includes a booking transaction made through a short–term rental platform.</text> </level> </level> <level label="b"> <text>Except as otherwise provided in this subtitle, a vendor shall collect the applicable sales and use tax from the buyer:</text> <level label="1"> <text>at the time that the sale is made, regardless of when the taxable price is paid;</text> </level> <level label="2"> <text>if the tax is based on a credit or installment sale, at the time that the Comptroller requires by regulation; or</text> </level> <level label="3"> <text>if a sale for use is not taxable when the sale is made, at the time that the use becomes taxable.</text> </level> </level> <level label="c"> <text>Except as otherwise provided in this title, unless a buyer is otherwise required by regulation to pay the sales and use tax directly to the Comptroller, the buyer shall pay the sales and use tax to the vendor at the time required under subsection (b) of this section.</text> </level> <level label="d"> <text>A vendor shall refund to a buyer the proportionate amount of sales and use tax that the buyer has paid if:</text> <level label="1"> <level label="i"> <text>a sale is rescinded or canceled; or</text> </level> <level label="ii"> <text>the property sold is returned to the vendor; and</text> </level> </level> <level label="2"> <text>the purchase price is wholly or partially repaid or credited.</text> </level> </level> <level label="e"> <level label="1"> <text>A buyer may present to the vendor a certificate indicating multiple points of use of a digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this title, if:</text> <level label="i"> <text>the buyer knows at the time of purchase that the digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this title will be:</text> <level label="1"> <text>concurrently available for use by the buyer in more than one taxing jurisdiction; or</text> </level> <level label="2"> <text>resold in its original form to a member of an affiliated group or a related pass–through entity of which the buyer is also a member; and</text> </level> </level> <level label="ii"> <text>the buyer delivers to the vendor the certificate indicating multiple points of use at the time of purchase.</text> </level> </level> <level label="2"> <text>On receipt of the fully completed certificate indicating multiple points of use, the vendor is relieved of the obligation to collect, pay, or remit the applicable tax to the Comptroller and, subject to paragraph (4) of this subsection, the buyer is obligated to collect, pay, or remit the applicable tax to the Comptroller.</text> </level> <level label="3"> <text>The buyer delivering the certificate indicating multiple points of use may use any reasonable but consistent and uniform method of apportionment that is supported by the buyer’s records as they exist at the time of the sale and accurately reflects the primary use location in the State.</text> </level> <level label="4"> <level label="i"> <text>If the apportionment on the certificate indicating multiple points of use is determined based on a subsequent resale to one or more members of an affiliated group or related pass–through entities, the affiliated member or related pass–through entity reselling the digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this title to another affiliated member or related pass–through entity shall:</text> <level label="1"> <text>assume or absorb the sales and use tax due from the affiliated member or members or related pass–through entity or entities on that portion of the sale apportioned to the State and pay the sales and use tax due on behalf of the affiliated member or members or related pass–through entity or entities; or</text> </level> <level label="2"> <text>be liable for the sales and use tax due from the affiliated member or members or related pass–through entity or entities if the sales and use tax due is not paid by the affiliated member or members or related pass–through entity or entities.</text> </level> </level> <level label="ii"> <text>If the sales and use tax is paid as provided in subparagraph (i) of this paragraph, the affiliated member end user or related pass–through entity end user is relieved of the obligation to pay or remit the applicable tax to the Comptroller.</text> </level> </level> <level label="5"> <text>Notwithstanding any other provision of this subsection, if the taxable price of a subsequent resale of a digital code, digital product, or taxable service described under § 11–101(m)(14) or (15) of this title to an affiliated group member or related pass–through entity is higher than the taxable price on which the sales and use tax was paid, the end user shall be liable for the additional sales and use tax due on the difference in the taxable price.</text> </level> <level label="6"> <text>The certificate indicating multiple points of use shall include all information required by the Comptroller.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-403.1" title_number="11" title_name="Sales and Use Tax" subtitle_number="4" subtitle_name="Tax Collection"> <level label="a"> <level label="1"> <text>A marketplace facilitator shall collect the applicable sales and use tax due on a retail sale or sale for use by a marketplace seller to a buyer in this State.</text> </level> <level label="2"> <text>A marketplace seller is not required to collect the applicable sales and use tax under paragraph (1) of this subsection to the extent that the marketplace facilitator collects the applicable sales and use tax.</text> </level> </level> <level label="b"> <text>Except as otherwise provided in this title, unless a buyer is otherwise required by regulation to pay the sales and use tax directly to the Comptroller, the buyer shall pay the sales and use tax to the marketplace facilitator at the time of the taxable sale described under subsection (a) of this section.</text> </level> <level label="c"> <text>A marketplace facilitator, or other appropriate party, shall refund to a buyer the proportionate amount of sales and use tax that the buyer has paid if:</text> <level label="1"> <level label="i"> <text>a sale is rescinded or canceled; or</text> </level> <level label="ii"> <text>the property sold is returned to the marketplace facilitator or marketplace seller; and</text> </level> </level> <level label="2"> <text>the purchase price is wholly or partially repaid or credited.</text> </level> </level> <level label="d"> <text>A marketplace facilitator shall report the sales and use tax collected under this section separately from the sales and use tax collected by the marketplace facilitator on taxable sales made directly by the marketplace facilitator, or an affiliate of the marketplace facilitator, to buyers in this State.</text> </level> <level label="e"> <level label="1"> <text>A class action may not be brought against a marketplace facilitator in a court of this State on behalf of buyers arising from or in any way related to an overpayment of sales or use tax collected on sales facilitated by the marketplace facilitator, regardless of whether that claim is characterized as a tax refund claim.</text> </level> <level label="2"> <text>Paragraph (1) of this subsection may not be construed to affect a buyer’s right to seek a refund under subsection (c) of this section or Title 13, Subtitle 9 of this article.</text> </level> </level> <level label="f"> <level label="1"> <text>This subsection does not apply if a marketplace facilitator and a marketplace seller are related entities.</text> </level> <level label="2"> <text>A marketplace facilitator is not liable for a failure to collect the correct amount of sales and use tax due under this section if the marketplace facilitator demonstrates to the satisfaction of the Comptroller that the failure was the result of insufficient or incorrect information provided by the marketplace seller.</text> </level> </level> <level label="g"> <text>Nothing in this section affects the obligation of a buyer to remit the applicable sales and use tax for any taxable sale for which a marketplace facilitator fails to collect and remit the applicable sales and use tax.</text> </level> <level label="h"> <level label="1"> <text>A marketplace facilitator and marketplace seller may apply to the Comptroller for a waiver of the collection requirement under this section if:</text> <level label="i"> <text>the marketplace seller is a communications company that is publicly traded or is controlled, directly or indirectly, by a company that is publicly traded;</text> </level> <level label="ii"> <text>the marketplace facilitator and marketplace seller enter into an agreement that the marketplace seller will collect and remit all applicable sales and use taxes imposed under this title; and</text> </level> <level label="iii"> <text>the marketplace seller provides evidence to the marketplace facilitator that the marketplace seller is licensed under § 11–702 of this title to engage in the business of an out–of–state vendor in the State or a retail vendor in the State.</text> </level> </level> <level label="2"> <text>If the waiver under paragraph (1) of this subsection is authorized:</text> <level label="i"> <text>the marketplace seller subject to the agreement under paragraph (1) of this subsection shall collect and remit the sales and use tax imposed under this title;</text> </level> <level label="ii"> <text>the marketplace facilitator is not required to collect or remit the sales and use tax imposed under this title; and</text> </level> <level label="iii"> <text>the marketplace facilitator is not liable for the failure of a marketplace seller to collect and remit any sales and use tax imposed under this title.</text> </level> </level> <level label="3"> <text>The Comptroller shall adopt regulations that establish:</text> <level label="i"> <text>the criteria for obtaining a waiver under this subsection; and</text> </level> <level label="ii"> <text>the process and procedure to apply for a waiver.</text> </level> </level> </level> <level label="i"> <level label="1"> <text>If the Comptroller conducts an audit for compliance with this section, the Comptroller may audit only the marketplace facilitator for sales made by a marketplace seller that are facilitated by the marketplace facilitator.</text> </level> <level label="2"> <text>The Comptroller may not audit the marketplace seller for sales facilitated by the marketplace facilitator for which the marketplace facilitator collected or should have collected the sales and use tax due.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-404" title_number="11" title_name="Sales and Use Tax" subtitle_number="4" subtitle_name="Tax Collection"> <text>The collection of the sales and use tax on a sale for use in the State is not affected even if:</text> <level label="1"> <text>as a result of solicitation by the vendor in a catalog or other written advertisement, the order of the buyer or the contract of sale is delivered, mailed, or otherwise transmitted out of the State to the vendor;</text> </level> <level label="2"> <text>the order of the buyer or the contract of sale provides for tangible personal property obtained or manufactured out of the State to be shipped directly to the buyer from the point of origin;</text> </level> <level label="3"> <text>tangible personal property, intended to be brought into the State for use in the State, is delivered outside the State directly to the buyer;</text> </level> <level label="4"> <text>the order of the buyer or the contract of sale is made or closed:</text> <level label="i"> <text>by acceptance or approval out of the State; or</text> </level> <level label="ii"> <text>before the tangible personal property enters the State; or</text> </level> </level> <level label="5"> <text>whether transportation costs are paid by the vendor or the buyer, tangible personal property:</text> <level label="i"> <text>is mailed to a buyer in the State from outside the State; or</text> </level> <level label="ii"> <text>is delivered outside the State to a carrier freight on board or otherwise and directed to the buyer in the State.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-405" title_number="11" title_name="Sales and Use Tax" subtitle_number="4" subtitle_name="Tax Collection"> <text>A vendor who sells tangible personal property, a digital code, a digital product, or a taxable service through a vending or other self–service machine:</text> <level label="1"> <text>shall pay the sales and use tax to the Comptroller; and</text> </level> <level label="2"> <text>may not collect the sales and use tax from the buyer as a separately stated item.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-406" title_number="11" title_name="Sales and Use Tax" subtitle_number="4" subtitle_name="Tax Collection"> <level label="a"> <level label="1"> <text>If the nature of a vendor’s business makes the collection of the sales and use tax at the time of a retail sale impracticable, the vendor may submit to the Comptroller an application for authority to prepay the tax.</text> </level> <level label="2"> <text>If the Comptroller approves the application, the Comptroller may impose on the applicant any condition that is reasonable under the circumstances.</text> </level> <level label="3"> <text>If the Comptroller denies an application or imposes a condition on the applicant, the Comptroller shall:</text> <level label="i"> <text>give the applicant notice of the action; and</text> </level> <level label="ii"> <text>schedule a prompt hearing for review of the action.</text> </level> </level> <level label="4"> <text>An applicant may waive the hearing under paragraph (3) of this subsection.</text> </level> </level> <level label="b"> <text>A vendor who obtains authority to prepay the tax under this section:</text> <level label="1"> <text>shall pay the sales and use tax to the Comptroller; and</text> </level> <level label="2"> <text>may not collect the sales and use tax from the buyer as a separately stated item.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-407" title_number="11" title_name="Sales and Use Tax" subtitle_number="4" subtitle_name="Tax Collection"> <level label="a"> <level label="1"> <text>Except as provided in subsection (c) of this section, on or after July 1, 1993, the Comptroller may not:</text> <level label="i"> <text>grant the authority to make direct payment, to the Comptroller, of sales and use tax due on purchases by a vendor; or</text> </level> <level label="ii"> <text>issue permits evidencing such authority.</text> </level> </level> <level label="2"> <text>Notwithstanding the provisions of paragraph (1) of this subsection, the Comptroller may continue to administer direct payment permits issued to vendors before July 1, 1993.</text> </level> <level label="3"> <text>The Comptroller may:</text> <level label="i"> <text>issue the permit subject to reasonable and necessary terms and conditions; and</text> </level> <level label="ii"> <text>revoke the direct payment permit at any time for cause.</text> </level> </level> </level> <level label="b"> <text>A vendor who receives evidence that the buyer has a direct payment permit is discharged from:</text> <level label="1"> <text>the duty to collect the sales and use tax; and</text> </level> <level label="2"> <text>the liability for the sales and use tax.</text> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>The Comptroller may enter into an effective rate agreement with a vendor licensed under Subtitle 7 of this title to allow the vendor to compute its sales and use tax liability for purchases made by the vendor for a specific period using a predetermined agreed-upon effective rate, eliminating the need to determine the liability on a transaction-by-transaction basis.</text> </level> <level label="ii"> <text>An effective rate agreement:</text> <level label="1"> <text>shall specify the types of records to be maintained by the vendor; and</text> </level> <level label="2"> <text>may exclude specified types of purchases or purchases in excess of specified dollar amounts.</text> </level> </level> <level label="iii"> <text>The Comptroller may void an effective rate agreement entered into under this subsection if the vendor’s operations significantly change during the term of the agreement.</text> </level> </level> <level label="2"> <level label="i"> <text>If the Comptroller enters into an effective rate agreement with a vendor under this subsection, the Comptroller may issue a direct payment permit authorizing the vendor to make direct payment, to the Comptroller, of the sales and use tax due on purchases by that vendor that are subject to the effective rate agreement.</text> </level> <level label="ii"> <text>A direct payment permit issued under this paragraph remains in effect as long as the effective rate agreement is in effect.</text> </level> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-408" title_number="11" title_name="Sales and Use Tax" subtitle_number="4" subtitle_name="Tax Collection"> <level label="a"> <text>If a buyer is required under Subtitle 2 of this title or by regulation to provide a vendor with evidence of an exemption, the vendor may not recognize the exemption unless the buyer, before the sale is consummated, provides the vendor with:</text> <level label="1"> <text>evidence that the buyer has an exemption certificate; or</text> </level> <level label="2"> <text>the evidence that the Comptroller requires by regulation.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (3) of this subsection, the duty of a vendor to collect the sales and use tax from a buyer is waived if the buyer provides the vendor with a signed resale certificate that:</text> <level label="i"> <text>is in the form that the Comptroller requires by regulation;</text> </level> <level label="ii"> <text>states the name and address of the buyer;</text> </level> <level label="iii"> <level label="1"> <text>provides the Maryland sales and use tax registration number of the buyer; or</text> </level> <level label="2"> <text>for the sale of an antique or used collectible, provides a sales and use tax registration number of another state and states that the buyer is an out–of–state vendor who does not engage in the business of an out–of–state vendor, as defined in § 11–701 of this title; and</text> </level> </level> <level label="iv"> <text>contains a statement to the effect that the tangible personal property, digital code, digital product, or taxable service is bought for the purpose of resale.</text> </level> </level> <level label="2"> <level label="i"> <text>If a buyer provides a resale certificate with a sales and use tax registration number of another state as provided under paragraph (1)(iii)2 of this subsection, the buyer shall also provide a copy of a sales and use tax registration license issued to the buyer from that state.</text> </level> <level label="ii"> <text>If a buyer is from a state without a sales and use tax, that buyer shall provide a copy of a trader’s license from that state or a comparable type of identification.</text> </level> </level> <level label="3"> <level label="i"> <text>A vendor may not accept a resale certificate if the vendor knows or should know that the sale is not for the purpose of resale.</text> </level> <level label="ii"> <text>A vendor may not accept a resale certificate for a cash, check, or credit card sale if:</text> <level label="1"> <text>the taxable price is less than $200; and</text> </level> <level label="2"> <text>the tangible personal property, digital code, digital product, or taxable service is not delivered by the vendor directly to the buyer’s retail place of business.</text> </level> </level> </level> <level label="4"> <text>A vendor shall obtain a resale certificate from a buyer:</text> <level label="i"> <text>before the sale is consummated; or</text> </level> <level label="ii"> <text>if the vendor receives a notice of the Comptroller’s intent to assess sales and use tax for failure to obtain a proper resale certificate, within 60 days after the date on which the notice is mailed.</text> </level> </level> <level label="5"> <text>If the vendor fails to obtain the resale certificate as required, the Comptroller’s assessment under paragraph (4)(ii) of this subsection is final.</text> </level> </level> <level label="c"> <text>If the taxable price is less than $200 for a cash, check, or credit card sale or sale for use that is not a retail sale and the tangible personal property, digital code, digital product, or taxable service is not delivered by the vendor directly to the buyer’s retail place of business:</text> <level label="1"> <text>the sales and use tax shall be paid when the sale is made or when the use becomes taxable; and</text> </level> <level label="2"> <text>the buyer who pays the sales and use tax may file a claim for a refund with the Comptroller.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-409" title_number="11" title_name="Sales and Use Tax" subtitle_number="4" subtitle_name="Tax Collection"> <text>Notwithstanding any other provisions of law, before a State agency issues a rebate or similar instrument or authorizes a rebate or similar instrument to be issued by a nongovernmental entity to reduce the cost of a retail sale of household appliances under a program to promote energy efficiency, the State agency or nongovernmental entity shall require the buyer of a household appliance to certify that:</text> <level label="1"> <text>the household appliance was purchased at a retail sale in the State; or</text> </level> <level label="2"> <text>the buyer paid the applicable State sales and use tax.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-410" title_number="11" title_name="Sales and Use Tax" subtitle_number="4" subtitle_name="Tax Collection"> <text>A marina that sells dyed diesel fuel, as defined in § 11–104(h) of this title:</text> <level label="1"> <text>shall pay the sales and use tax to the Comptroller; and</text> </level> <level label="2"> <text>may not collect the sales and use tax from the buyer as a separately stated item.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-411" title_number="11" title_name="Sales and Use Tax" subtitle_number="4" subtitle_name="Tax Collection"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Business entity” has the meaning stated in § 6–801 of the Economic Development Article.</text> </level> <level label="3"> <text>“Department” means the Department of Commerce.</text> </level> <level label="4"> <text>“Eligible project” has the meaning stated in § 6–801 of the Economic Development Article.</text> </level> <level label="5"> <text>“New business entity” has the meaning stated in § 6–801 of the Economic Development Article.</text> </level> <level label="6"> <text>“Program” means the More Jobs for Marylanders Program established under Title 6, Subtitle 8 of the Economic Development Article.</text> </level> <level label="7"> <text>“Qualified business entity” means a new business entity operating an eligible project under Title 6, Subtitle 8 of the Economic Development Article if the business entity received a certificate under § 6–805 of the Economic Development Article before June 1, 2022.</text> </level> <level label="8"> <text>“Qualified personal property or services” means personal property or services purchased for use at an eligible project by a qualified business entity that is enrolled in the Program.</text> </level> <level label="9"> <text>“Reserve Fund” means the More Jobs for Marylanders Sales and Use Tax Refund Reserve Fund established under this section.</text> </level> </level> <level label="b"> <text>Except as provided in § 6–805(b) of the Economic Development Article and subject to subsection (c) of this section, a qualified business entity is entitled to a refund for the amount of sales and use tax paid by the qualified business entity during the immediately preceding calendar year for a sale of qualified personal property or services made on or after January 1, 2018, if the qualified personal property or services are purchased by the qualified business entity solely for use at an eligible project while the project is enrolled in the Program.</text> </level> <level label="c"> <text>A qualified business entity may claim the refund authorized under subsection (b) of this section by:</text> <level label="1"> <text>on or after January 1 of the calendar year immediately following the purchase of the qualified personal property or services, filing a claim for refund with the Department; and</text> </level> <level label="2"> <text>providing the Department any evidence that the Department requires by regulation.</text> </level> </level> <level label="d"> <level label="1"> <text>There is a More Jobs for Marylanders Sales and Use Tax Refund Reserve Fund that is a special continuing, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The money in the Reserve Fund shall be invested and reinvested by the State Treasurer, and interest and earnings shall be credited to the General Fund.</text> </level> <level label="3"> <text>The Department shall issue a refund in an amount equal to the amount claimed by the qualified business entity under subsection (c) of this section.</text> </level> <level label="4"> <level label="i"> <text>Except as otherwise provided in this paragraph, for any fiscal year, the Department may not issue sales and use tax refunds in amounts in the aggregate totaling more than $1,000,000 in a fiscal year.</text> </level> <level label="ii"> <text>If the aggregate amount of sales and use tax refunds issued in a fiscal year totals less than the maximum provided under subparagraph (i) of this paragraph, any excess amount shall be transferred to the More Jobs for Marylanders Tax Credit Reserve Fund established under § 10–741 of this article.</text> </level> <level label="iii"> <text>For any fiscal year, if funds are transferred from the Reserve Fund under authority of any provision of law, the maximum amounts in the aggregate for which the Department may issue sales and use tax refunds shall be reduced by the amount transferred.</text> </level> </level> <level label="5"> <text>For fiscal year 2019 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation to the Reserve Fund.</text> </level> <level label="6"> <text>Notwithstanding the provisions of § 7–213 of the State Finance and Procurement Article, the Governor may not reduce an appropriation to the Reserve Fund in the State budget as approved by the General Assembly.</text> </level> </level> <level label="e"> <text>The Department shall adopt regulations to carry out the provisions of this section and to specify criteria and procedures for the application for, approval of, and monitoring of continuing eligibility for sales and use tax refunds under this section.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-501" title_number="11" title_name="Sales and Use Tax" subtitle_number="5" subtitle_name="Returns and Records"> <level label="a"> <text>A buyer who fails to pay the sales and use tax on a purchase or use subject to the tax to the vendor as required in § 11–403 of this title or to a marketplace facilitator as required in § 11–403.1 of this title or who is required by regulation to file a return for a purchase or use subject to the tax shall complete, under oath, and file with the Comptroller a sales and use tax return:</text> <level label="1"> <text>on or before the 20th day of the month that follows the month in which the buyer makes that purchase or use; and</text> </level> <level label="2"> <text>for other periods and on other dates that the Comptroller specifies, by regulation, including periods in which the buyer does not make any purchase or use subject to the sales and use tax.</text> </level> </level> <level label="b"> <text>The return shall state for the period that the return covers:</text> <level label="1"> <text>the total value of the tangible personal property, digital code, digital product, or taxable service that is subject to the sales and use tax; and</text> </level> <level label="2"> <text>the sales and use tax due.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-502" title_number="11" title_name="Sales and Use Tax" subtitle_number="5" subtitle_name="Returns and Records"> <level label="a"> <text>Except as provided in § 11–403.1(a) of this title and § 11–502.1 of this subtitle, each vendor shall complete, under oath, and file with the Comptroller a sales and use tax return:</text> <level label="1"> <text>on or before the 20th day of the month that follows the month in which the vendor makes any retail sale or sale for use; and</text> </level> <level label="2"> <text>for other periods and on other dates that the Comptroller specifies by regulation, including periods in which the vendor does not make any retail sale or sale for use.</text> </level> </level> <level label="b"> <text>A return shall state, for the period that the return covers:</text> <level label="1"> <text>for a vendor making a retail sale in the State:</text> <level label="i"> <text>the gross proceeds of the business of the vendor;</text> </level> <level label="ii"> <text>the taxable price of sales on which the sales and use tax is computed; and</text> </level> <level label="iii"> <text>the sales and use tax due; and</text> </level> </level> <level label="2"> <text>for a vendor making a sale for use:</text> <level label="i"> <text>the total value of the tangible personal property or taxable service the use of which became subject to the sales and use tax; and</text> </level> <level label="ii"> <text>the sales and use tax due.</text> </level> </level> </level> <level label="c"> <text>If the Comptroller approves, a vendor engaging in more than 1 business in which the vendor makes retail sales or sales for use may file a consolidated return covering the activities of the businesses.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-502.1" title_number="11" title_name="Sales and Use Tax" subtitle_number="5" subtitle_name="Returns and Records"> <level label="a"> <text>Each marketplace facilitator shall complete, under oath, and file with the Comptroller a sales and use tax return:</text> <level label="1"> <text>on or before the 20th day of the month that follows the month in which a marketplace seller makes any retail sale or sale for use through the marketplace facilitator; and</text> </level> <level label="2"> <text>for other periods and on other dates that the Comptroller specifies by regulation, including periods in which a marketplace seller does not make any retail sale or sale for use through the marketplace facilitator.</text> </level> </level> <level label="b"> <text>A return shall state, for the period that the return covers:</text> <level label="1"> <text>for a marketplace facilitator facilitating a retail sale or a sale for use:</text> <level label="i"> <text>the marketplace facilitator’s gross revenues from the sales of marketplace sellers that the marketplace facilitator has facilitated and delivered in the State;</text> </level> <level label="ii"> <text>the taxable price of sales of those marketplace sellers on which the sales and use tax is computed; and</text> </level> <level label="iii"> <text>the sales and use tax due; and</text> </level> </level> <level label="2"> <text>for a marketplace facilitator facilitating a sale for use:</text> <level label="i"> <text>the total value of the tangible personal property, digital code, digital product, or taxable service sold by marketplace sellers the use of which became subject to the sales and use tax; and</text> </level> <level label="ii"> <text>the sales and use tax due.</text> </level> </level> </level> <level label="c"> <text>If the Comptroller approves, a marketplace facilitator engaging in more than one business in which the marketplace facilitator facilitates retail sales or sales for use may file a consolidated return covering the activities of the businesses.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-502.2" title_number="11" title_name="Sales and Use Tax" subtitle_number="5" subtitle_name="Returns and Records"> <text>For periods beginning after December 31, 2026, a person shall file a sales and use tax return electronically. </text> </section> <section article="gtg" article_name="Tax - General" number="11-502.3" future_version_removed="true" title_number="11" title_name="Sales and Use Tax" subtitle_number="5" subtitle_name="Returns and Records" /> <section article="gtg" article_name="Tax - General" number="11-503" title_number="11" title_name="Sales and Use Tax" subtitle_number="5" subtitle_name="Returns and Records"> <text>If the Comptroller finds that good cause exists and subject to § 13-601 of this article, the Comptroller may extend the time to file a sales and use tax return for the period that the Comptroller considers reasonable.</text> </section> <section article="gtg" article_name="Tax - General" number="11-504" title_number="11" title_name="Sales and Use Tax" subtitle_number="5" subtitle_name="Returns and Records"> <level label="a"> <text>A vendor shall keep:</text> <level label="1"> <text>complete and accurate records of:</text> <level label="i"> <text>all retail sales and sales for use; and</text> </level> <level label="ii"> <text>the sales and use tax collected; and</text> </level> </level> <level label="2"> <text>other records in the form that the Comptroller requires by regulation, including bills of lading and invoices.</text> </level> </level> <level label="b"> <text>A vendor shall make the records under subsection (a) of this section available for inspection and examination by the Comptroller at any time during business hours.</text> </level> <level label="c"> <text>A vendor shall keep the records required under subsection (a) of this section for 4 years, unless the Comptroller:</text> <level label="1"> <text>consents in writing to an earlier destruction of the records; or</text> </level> <level label="2"> <text>requires in writing that the records be kept longer.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-505" title_number="11" title_name="Sales and Use Tax" subtitle_number="5" subtitle_name="Returns and Records"> <level label="a"> <text>A transferee or auctioneer in a bulk transfer, as defined in § 6-102 of the Commercial Law Article, shall mail to the Comptroller the notice to creditors, as required in §§ 6-107 and 6-108 of the Commercial Law Article, whether or not:</text> <level label="1"> <text>the transferor lists the Comptroller as a creditor; or</text> </level> <level label="2"> <text>the transferee or auctioneer knows that the transferor owes any sales and use tax.</text> </level> </level> <level label="b"> <text>If the Comptroller finds that the transferor owes sales and use tax, the Comptroller shall file a claim for sales and use tax due from the transferor at the address required in the notice to creditors.</text> </level> <level label="c"> <text>If the Comptroller files a claim under subsection (b) of this section, the transferee or auctioneer shall withhold the amount stated in the claim from distribution to the transferor.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-601" future_version_removed="true" title_number="11" title_name="Sales and Use Tax" subtitle_number="6" subtitle_name="Tax Payment"> <level label="a"> <text>A buyer who fails to pay the sales and use tax to the vendor for any purchase or use subject to the tax as required in § 11–403 of this title or who is required by regulation to file a return for a purchase or use subject to the tax shall pay the sales and use tax on that purchase or use with the return that covers the period in which the buyer makes that purchase or use.</text> </level> <level label="b"> <level label="1"> <text>A vendor who makes a sale subject to the sales and use tax shall pay the sales and use tax that the vendor collects for that sale or that the vendor assumes or absorbs for that sale with the return that covers the period in which the vendor makes that sale.</text> </level> <level label="2"> <text>A vendor who, under a direct payment permit, makes a purchase or use subject to the sales and use tax shall pay the sales and use tax for that purchase or use with the return that covers the period in which the vendor makes that purchase or use.</text> </level> <level label="3"> <text>A vendor who makes a sale subject to the sales and use tax under a prepayment authorization or through a vending machine shall pay the sales and use tax on that sale with the return that covers the period in which the vendor makes that sale.</text> </level> </level> <level label="c"> <text>Personal liability for the sales and use tax and for the interest and penalties of the tax extends to:</text> <level label="1"> <text>a buyer for tax that the buyer does not pay to:</text> <level label="i"> <text>the vendor as required in § 11–403 of this title; or</text> </level> <level label="ii"> <text>the Comptroller as required by regulation; and</text> </level> </level> <level label="2"> <text>a vendor for tax that the vendor does not:</text> <level label="i"> <text>collect from the buyer as required in § 11–403 of this title; or</text> </level> <level label="ii"> <text>pay to the Comptroller as required in subsection (b) of this section.</text> </level> </level> </level> <level label="d"> <text>If a buyer or vendor liable for the sales and use tax and for the interest and penalties of the tax under subsection (c) of this section is a corporation or limited liability company or limited liability partnership (including a limited partnership registered as a limited liability limited partnership), personal liability for the sales and use tax and for the interest and penalties of the tax extends to:</text> <level label="1"> <text>in the case of a corporation:</text> <level label="i"> <text>the president, vice president, or treasurer of the corporation; and</text> </level> <level label="ii"> <text>any officer of the corporation who directly or indirectly owns more than 20% of the stock of the corporation; and</text> </level> </level> <level label="2"> <text>in the case of a limited liability company:</text> <level label="i"> <text>if the limited liability company does not have an operating agreement, all members; or</text> </level> <level label="ii"> <text>if the limited liability company has an operating agreement, those individuals who manage the business and affairs of the limited liability company; and</text> </level> </level> <level label="3"> <text>in the case of a limited liability partnership:</text> <level label="i"> <text>if the limited liability partnership does not have a written partnership agreement, all general partners; or</text> </level> <level label="ii"> <text>if the limited liability partnership has a written partnership agreement, those individuals who manage the business and affairs of the limited liability partnership.</text> </level> </level> </level> <level label="e"> <text>A member of a limited liability company does not manage the business and affairs of the limited liability company under subsection (d) of this section solely by doing one or more of the following:</text> <level label="1"> <text>consulting with or advising the individuals who manage the business and affairs of the limited liability company;</text> </level> <level label="2"> <text>directing the management of the limited liability company in the same manner as a director of a corporation directs the management of a corporation; or</text> </level> <level label="3"> <text>voting on any matter required to be voted on by the members of the limited liability company, including, but not limited to:</text> <level label="i"> <text>the approval or disapproval of amendments to the operating agreement;</text> </level> <level label="ii"> <text>the termination and winding up of the limited liability company;</text> </level> <level label="iii"> <text>the sale, exchange, lease, mortgage, pledge, or other transfer of a material portion of the assets of the limited liability company;</text> </level> <level label="iv"> <text>the incurrence of indebtedness by the limited liability company other than in the ordinary course of its business;</text> </level> <level label="v"> <text>a change in the nature of the business of the limited liability company;</text> </level> <level label="vi"> <text>the expulsion or admission of a member;</text> </level> <level label="vii"> <text>the appointment or discharge of a manager;</text> </level> <level label="viii"> <text>the merger of the limited liability company with or into any other entity; or</text> </level> <level label="ix"> <text>any matter related to the business of the limited liability company not otherwise enumerated in this section that the operating agreement states may be subject to the approval or disapproval of the members.</text> </level> </level> </level> <level label="f"> <text>The possession or exercise of powers other than those contained in subsection (e) of this section by a member does not necessarily constitute management by the member of the business or affairs of the limited liability company.</text> </level> <level label="g"> <text>The same rules and exceptions applicable to a member of a limited liability company set forth in subsections (e) and (f) of this section shall be applicable to individuals and members of limited liability partnerships.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-701" title_number="11" title_name="Sales and Use Tax" subtitle_number="7" subtitle_name="Licensing"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Engage in the business of an out–of–state vendor” means to sell or deliver tangible personal property or a taxable service for use in the State or a digital product or digital code to a customer tax address in the State.</text> </level> <level label="2"> <text>“Engage in the business of an out–of–state vendor” includes:</text> <level label="i"> <text>permanently or temporarily maintaining, occupying, or using any office, sales or sample room, or distribution, storage, warehouse, or other place for the sale of tangible personal property, a digital code, a digital product, or a taxable service directly or indirectly through an agent or subsidiary;</text> </level> <level label="ii"> <text>having an agent, canvasser, representative, salesman, or solicitor operating in the State for the purpose of delivering, selling, or taking orders for tangible personal property, a digital code, a digital product, or a taxable service; or</text> </level> <level label="iii"> <text>entering the State on a regular basis to provide service or repair for tangible personal property or a digital product.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>“Engage in the business of a retail vendor” means to sell or deliver tangible personal property, a digital code, a digital product, or a taxable service in the State.</text> </level> <level label="2"> <text>“Engage in the business of a retail vendor” includes liquidating a business that sells tangible personal property, a digital code, a digital product, or a taxable service, when the liquidator holds out to the public that the business is conducted by the liquidator.</text> </level> </level> <level label="d"> <level label="1"> <text>“License” means a license issued by the Comptroller:</text> <level label="i"> <text>to engage in the business of an out–of–state vendor;</text> </level> <level label="ii"> <text>to engage in the business of a retail vendor; or</text> </level> <level label="iii"> <text>to engage in the business of a marketplace facilitator.</text> </level> </level> <level label="2"> <text>“License” includes a special license issued under § 11–707 of this subtitle.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-702" title_number="11" title_name="Sales and Use Tax" subtitle_number="7" subtitle_name="Licensing"> <text>A person shall be licensed by the Comptroller before the person may:</text> <level label="1"> <text>engage in the business of an out–of–state vendor in the State;</text> </level> <level label="2"> <text>engage in the business of a retail vendor in the State; or</text> </level> <level label="3"> <text>engage in the business of a marketplace facilitator.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-703" title_number="11" title_name="Sales and Use Tax" subtitle_number="7" subtitle_name="Licensing"> <text>An applicant for a license to engage in the business of an out–of–state vendor, to engage in the business of a retail vendor, or to engage in the business of a marketplace facilitator shall submit an application to the Comptroller:</text> <level label="1"> <text>for each place of business in the State where the applicant sells tangible personal property, a digital code, a digital product, or a taxable service;</text> </level> <level label="2"> <text>if the applicant has no fixed place of business and sells from 1 or more vehicles, for each vehicle; or</text> </level> <level label="3"> <text>if the applicant has no fixed place of business and does not sell from a vehicle, for the place designated as the address to which notices are to be mailed.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-704" title_number="11" title_name="Sales and Use Tax" subtitle_number="7" subtitle_name="Licensing"> <text>The Comptroller shall issue to each applicant who meets the requirements of this subtitle a license for each place of business designated in the application.</text> </section> <section article="gtg" article_name="Tax - General" number="11-705" title_number="11" title_name="Sales and Use Tax" subtitle_number="7" subtitle_name="Licensing"> <text>While it is effective, and except as provided under § 11–707(b) of this subtitle, a license authorizes the licensee:</text> <level label="1"> <text>to engage in the business of an out–of–state vendor;</text> </level> <level label="2"> <text>to engage in the business of a retail vendor; or</text> </level> <level label="3"> <text>to engage in the business of a marketplace facilitator.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-706" title_number="11" title_name="Sales and Use Tax" subtitle_number="7" subtitle_name="Licensing"> <level label="a"> <text>Except as otherwise provided in this section, a license is effective until it is:</text> <level label="1"> <text>surrendered by the licensee; or</text> </level> <level label="2"> <text>revoked for cause by the Comptroller.</text> </level> </level> <level label="b"> <level label="1"> <text>If a partnership that is licensed to engage in the business of a retail vendor is dissolved by the death of a partner, the surviving partner or partners may operate under the license for not more than 60 days after the date of dissolution.</text> </level> <level label="2"> <text>If a person who is licensed to engage in the business of a retail vendor dies, the heirs or legal representative of the licensee may operate under the license for the period of time necessary for the administration of the licensee’s estate.</text> </level> <level label="3"> <text>If a person who is licensed to engage in the business of a retail vendor declares bankruptcy, the receiver or trustee in bankruptcy may operate under the license for the period of time necessary for the administration of the licensee’s assets.</text> </level> <level label="4"> <text>If 2 or more persons who constitute a single vendor licensed to engage in the business of a retail vendor operate at 1 place of business under 1 license, the retirement of 1 or more persons from the business or the addition of 1 or more persons to the business will not affect the license or require a new license for the place of business.</text> </level> </level> </section> <section article="gtg" article_name="Tax - General" number="11-707" title_number="11" title_name="Sales and Use Tax" subtitle_number="7" subtitle_name="Licensing"> <level label="a"> <text>The Comptroller may issue a special license to an applicant who:</text> <level label="1"> <text>is not required to be licensed as an out–of–state vendor or a retail vendor;</text> </level> <level label="2"> <text>operates out of the State and sells tangible personal property, a digital code, a digital product, or a taxable service for use in the State; and</text> </level> <level label="3"> <text>submits to the Comptroller an application on the form that the Comptroller requires.</text> </level> </level> <level label="b"> <text>While it is effective, a special license authorizes the licensee to collect the sales and use tax.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-708" title_number="11" title_name="Sales and Use Tax" subtitle_number="7" subtitle_name="Licensing"> <text>Each licensee shall display the license in each place of business of the licensee in the State.</text> </section> <section article="gtg" article_name="Tax - General" number="11-709" title_number="11" title_name="Sales and Use Tax" subtitle_number="7" subtitle_name="Licensing"> <text>Except as otherwise provided in this subtitle, a license may not be transferred.</text> </section> <section article="gtg" article_name="Tax - General" number="11-710" title_number="11" title_name="Sales and Use Tax" subtitle_number="7" subtitle_name="Licensing"> <text>Subject to the hearing provisions of § 11-711 of this subtitle, the Comptroller may deny a license to any applicant, reprimand any licensee, or suspend or revoke a license:</text> <level label="1"> <text>if the applicant or licensee:</text> <level label="i"> <text>fraudulently or deceptively obtains or attempts to obtain a license for the applicant or licensee or for another; or</text> </level> <level label="ii"> <text>fraudulently or deceptively uses a license; or</text> </level> </level> <level label="2"> <text>for cause.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-711" title_number="11" title_name="Sales and Use Tax" subtitle_number="7" subtitle_name="Licensing"> <level label="a"> <text>Except as otherwise provided in § 10-226 of the State Government Article, before the Comptroller takes an action under § 11-710 of this subtitle, the Comptroller shall give the person against whom the action is contemplated an opportunity for a hearing before the Comptroller.</text> </level> <level label="b"> <text>The Comptroller shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> <level label="c"> <text>The Comptroller may administer oaths in connection with any proceeding under this section.</text> </level> </section> <section article="gtg" article_name="Tax - General" number="11-712" title_number="11" title_name="Sales and Use Tax" subtitle_number="7" subtitle_name="Licensing"> <text>A person may not engage in the business of a retail vendor, engage in the business of an out–of–state vendor, or engage in the business of a marketplace facilitator without a license issued by the Comptroller under this subtitle.</text> </section>