WILLIAM DONALD SCHAEFER, Governor                             Ch. 6

Annotated Code of Maryland

(1988 Volume and 1992 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Tax - General

11-408.

(a)     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:

(1)     evidence that the buyer has an exemption certificate; or

(2)     the evidence that the Comptroller requires by regulation.

(b)     (1) Except as provided in paragraph (2) 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:

(i) is in the form that the Comptroller requires by regulation;

(ii) states the name, address, and registration certificate number of the
buyer; and

(iii) contains a statement to the effect that the tangible personal
property or taxable service is bought for the purpose of resale.

(2)     (I) A vendor may not accept a resale certificate [:

(i) for a cash, check, or credit card sale if the taxable price is less than
$500; or

(ii)] if the vendor knows or should know that the sale is not for the
purpose of resale.

(II) A VENDOR MAY NOT ACCEPT A RESALE CERTIFICATE FOR A
CASH, CHECK, OR CREDIT CARD SALE IF:

1. THE TAXABLE PRICE IS LESS THAN $200; AND

2. THE TANGIBLE PERSONAL PROPERTY OR TAXABLE
SERVICE IS NOT DELIVERED BY THE VENDOR DIRECTLY TO THE BUYER'S RETAIL
PLACE OF BUSINESS.

(3)     A vendor shall obtain a resale certificate from a buyer:

(i) before the sale is consummated; or

(ii) 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.

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