# Tax - General (GTG)

## Title 11. Sales and Use Tax

### Subtitle 2. Exemptions

#### Section 11-209

(a) The sales and use tax does not apply to a casual and isolated sale by a person who regularly does not sell tangible personal property, a digital code, a digital product, or a taxable service if:

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

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

(b) The sales and use tax does not apply to a distribution of tangible personal property, a digital code, or a digital product by:

  (1) a corporation or joint-stock company to its stockholders as a liquidating distribution;

  (2) a partnership to a partner; or

  (3) a limited liability company to a member.

(c)

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

    (i) under a reorganization within the meaning of Sec. 368(a) of the Internal Revenue Code;

    (ii) on organization of a corporation or joint-stock company, to the corporation or company principally in consideration for the issuance of its stock;

    (iii) to a partnership only as a contribution to its capital or in consideration for a partnership interest in the partnership; or

    (iv) to a limited liability company only as a capital contribution or in consideration for an interest in the limited liability company.

  (2) For a transfer that would qualify as a casual and isolated sale under subsection (a) of this section if the sale price limitation were disregarded, the amount of liability transferred to or assumed by a corporation, joint-stock company, partnership, or limited liability company shall be excluded from the consideration transferred by the corporation, joint-stock company, partnership, or limited liability company in exchange for the tangible personal property, digital code, or digital product to determine whether the transfer is made:

    (i) principally in consideration for the issuance of stock of a corporation or joint-stock company;

    (ii) only as a contribution to the capital of a partnership or in consideration for a partnership interest; or

    (iii) only as a capital contribution to a limited liability company or in consideration for an interest in a limited liability company.

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Md. Code Ann., Tax-Gen. (as displayed at mgaleg.maryland.gov, October 16, 2026)