# COMAR Title 21 — State Procurement Regulations

## Subtitle 07 — Contract Terms and Conditions

### Chapter 03 — Mandatory Terms and Conditions for Purchase Orders Over $50,000

#### Regulation .02 Tax Exemption.

*COMAR 21.07.03.02*

“The State is generally exempt from federal excise taxes, Maryland sales and use taxes, District of Columbia sales taxes, and transportation taxes. Exemption certificates shall be completed upon request. Where a contractor is required to furnish and install material in the construction or improvement of real property in performance of a contract, the Contractor shall pay the Maryland sales tax and the exemption does not apply.”