1462

LAWS OF MARYLAND

Ch. 557

Retail Sales Tax — Exemption

FOR the purpose of [[providing an exemption from the
retail sales act for certain capital transactions]]

exempting certain capital transactions from the

retail sales tax act.

BY adding to

Article 81 — Revenue and Taxes

Section [[326 (gg)]] 326A

Annotated Code of Maryland

(1975 Replacement Volume and 1975 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That new Section [[326 (gg)]] 326A be and it is
hereby added to Article 81 — Revenue and Taxes, of the
Annotated Code of Maryland (1975 Replacement Volume and
1975 Supplement) to read as follows:

Article 81 - Revenue and Taxes

[[326.

The tax hereby levied shall not apply to the
following sales:

(GG) THE FOLLOWING CAPITAL TRANSACTIONS:]]

326A.

THE TAX LEVIED BY THIS SUBTITLE DOES NOT APPLY TO
THE FOLLOWING CAPITAL TRANSACTIONS:

(1)    [[THE TRANSFER]] TRANSFERS OF TANGIBLE
PERSONAL PROPERTY TO A CORPORATION UPON ITS ORGANIZATION
PRINCIPALLY IN CONSIDERATION FOR THE ISSUANCE OF ITS
STOCK;

(2)    [[THE TRANSFER]] TRANSFERS OF TANGIBLE
PERSONAL PROPERTY MADE PURSUANT TO A REORGANIZATION
WITHIN THE MEANING OF SECTION 368(A) OR IN ACCORDANCE
WITH SECTIONS 371 OR 374 OF THE INTERNAL REVENUE CODE OF
1954;

(3)    [[THE DISTRIBUTION]] DISTRIBUTIONS OF
TANGIBLE PERSONAL PROPERTY BY A CORPORATION TO ITS
STOCKHOLDERS AS A LIQUIDATING DISTRIBUTION;

(4)    [[THE TRANSFER]] TRANSFERS OF TANGIBLE
PERSONAL PROPERTY TO A PARTNERSHIP SOLELY AS A
CONTRIBUTION TO THE CAPITAL OF A PARTNERSHIP OR IN
CONSIDERATION FOR A PARTNERSHIP INTEREST THEREIN;

(5) [[THE DISTRIBUTION]] DISTRIBUTIONS OF
TANGIBLE PERSONAL PROPERTY BY A PARTNERSHIP TO ITS