Ch. 6 LAWS OF MARYLAND

(6) The possession within [this] THE State of a vessel which was
purchased outside [this] THE State if the owner paid or incurred a liability for the
Maryland Use Tax on the vessel prior to July 1, 1986;

(7) The possession of a vessel that was purchased or acquired prior to
coming into [this] THE State by a nonresident of [this] THE State and is not used
principally on the waters of [this] THE State and if the issuance of a title is not sought;
or

(f) (1) This subsection applies to possession within [this] THE State of a
vessel if:

(i) The vessel was formerly:

1. Titled or numbered in another jurisdiction; or

2. Federally documented and principally used in another
jurisdiction;

(ii) The present owner has paid a sales or excise tax on the vessel to
the other jurisdiction; and

(iii) The jurisdiction to which the tax was paid would allow an
exemption or credit under its sales or excise tax for excise tax on a vessel formerly paid
to [this] THE State.

(2) For a vessel described in paragraph (1) of this subsection:

(i) If the rate of the tax paid to the other jurisdiction is not less than
the rate under subsection (c) of this section, the tax imposed under subsection (c) OF
THIS SECTION does not apply to possession of the vessel within [this] THE State;

(ii) If the rate of the tax paid to the other jurisdiction is less than the
rate under subsection (e) of this section, the rate of the tax imposed under subsection
(c) OF THIS SECTION on possession of the vessel within [this] THE State is the
difference between the tax rate paid to the other jurisdiction and the rate under
subsection (c) OF THIS SECTION; and

(g) (1) A person may claim a credit against any tax imposed under subsection
(c) of this section on a vessel for sales tax the person has paid to [this] THE State, to
another state, or to the District of Columbia on materials and equipment that are
incorporated into the vessel, if:

(i) 1. The person is licensed by the Department to catch, for
commercial purposes, finfish, eels, crabs, conch, terrapin, soft-shell clams, hard-shell
clams, oysters, or any other fish; and

2. The vessel is to be used for any of the commercial fishing
purposes described in item (i)l. of this paragraph; or

(ii) 1. Was licensed as a commercial fishing guide under the
provisions of § 4-210 of this article; and

- 136 -