MARVIN MANDEL, Governor                        443

[(x)](w)(U)(V) Baskets, crates, hampers, etc., purchased by
farmers.—Sales of baskets, crates, hampers, boxes, hogsheads and
other containers purchased by a farmer to transport to the market
products which he raises.

[(y)](x)(V)(W) Flags.—Sales of American flags and Maryland
flags.

[(z)](y) (W) (X) Demurrage charge on gas cylinders.—Sales in
the form of a demurrage charge on what is generally referred to as a
gas cylinder, when not imposed as a rental charge but rather as a
penalty for a failure to return the cylinder within a designated
period.

[(aa)(z)(X) (Y) Crab bait.—Fish or other materials used as
crab bait, whether in "crab pots" or otherwise.

[(bb)](aa)(Y) (Z) Materials used in research and develop-
ment.—Sales of all materials which are consumed, mutilated, or tested
to destruction, in the performance of research and development, and
of all materials which become a component part of any product
produced in the research and development process.

[(cc)](bb) (Z) (AA) Sales to financial institutions.—Sales to all
financial institutions, as defined in Section 128A of this article, to the
same extent that all sales to national banks are exempt under
federal law.

[(dd)](cc)(AA) (BB) Telephone, telegraph, etc., messages or
service.—The sale of or charges for telephone, telegraph, or other
telecommunication messages or service; provided that this exemption
shall automatically terminate, without further action by the General
Assembly, and such sales or charges shall become taxable under this
subtitle, to be collected upon original statements and billings made
on or after the effective date of federal legislation reducing or
eliminating the rate of federal excise tax upon such sales or charges,
to one percent or less.

373.

An excise tax is hereby levied and imposed on the use, storage
or consumption in this State of tangible personal property and
certain services purchased within or without this State on or after
the effective date of this section. The tax imposed by this section
shall be paid by the purchaser and shall be computed as follows:

[(a) On each sale where the price is from twenty-five cents
(25˘) to thirty-three cents (33˘), both inclusive, one cent (1˘);

(b) On each sale where the price is from thirty-four cents (34˘)
to sixty-six cents (66˘), both inclusive, two cents (2˘)

(c)    On each sale where the price is from sixty-seven cents
(67˘) to one dollar ($1) both inclusive, three cents (3˘);

(d)    On each sale where the price is in excess of one dollar ($1),
three cents (3˘) on each even dollar plus one cent (1˘) for each
thirty-three cents (33˘) or fraction thereof in excess of the even
dollar (s).]

(a) On each sale where the price is twenty-five cents (25˘),
one cent (1˘)