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MARVIN MANDEL, Governor 3237
Approved May 26, 1977.
CHAPTER 813
(House Bill 1291)
AN ACT concerning
Sales and Use Tax Exemptions -
Capital Transactions
FOR the purpose of clarifying the legislative intent with
respect to the exemption of certain capital
transactions from sales tax; and conforming the use
tax exemptions to the sales tax exemptions so as to
include that for capital transactions provided in
Section 326A of Article 81.
BY repealing and reenacting, with amendments,
Article 81 — Revenue and Taxes
Section 326A and 375(b)
Annotated Code of Maryland
(1975 Replacement Volume and 1976 Supplement)
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SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Sections 326A and 375(b) of Article 81 -
Revenue and Taxes, of the Annotated Code of Maryland
(1975 Replacement Volume and 1976 Supplement) be and they
are hereby repealed and reenacted, with amendments, to
read as follows:
Article 81 - Revenue and Taxes
326A.
The tax levied by this subtitle does not apply to
the following capital transactions;
(1) Transfers of tangible personal property to a
corporation upon its organization principally in
consideration for the issuance of its stock, AND, IN
DETERMINING WHETHER SUCH A TRANSFER IS PRINCIPALLY IN
CONSIDERATION FOR THE ISSUANCE OF A CORPORATION'S STOCK,
NO LIABILITY TRANSFERRED TO OR ASSUMED BY THE CORPORATION
SHALL. AS TO TRANSFERS WHICH WOULD OTHERWISE QUALIFY AS
CASUAL AND ISOLATED SALES PURSUANT TO SECTION 326(E) OF
THIS ARTICLE, IF NO ACCOUNT WERE TAKEN OF THE DOLLAR
LIMITATION PROVIDED THEREIN, IN DETERMINING WHETHER SUCH
TRANSFERS ARE PRINCIPALLY IN CONSIDERATION FOR THE
ISSUANCE OF A CORPORATION'S STOCK, LIABILITIES
TRANSFERRED TO OR ASSUMED BY THE CORPORATION SHALL NOT BE
DEEMED CONSIDERATION TRANSFERRED BY THE CORPORATION IN
EXCHANGE FOR THE TANGIBLE PERSONAL PROPERTY;
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