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LAWS OF MARYLAND

Ch. 455

which is altered or fabricated by a person under
contract to incorporate such property into realty
out-of-State where the purchase or use of such property
would not be subject to a sales, use, or similar tax;
and generally relating to the sales and use tax.

BY adding to

Article 81 — Revenue and Taxes

Section 326 (ii)

Annotated Code of Maryland

(1975 Replacement Volume and 1977 Supplement)

BY repealing and reenacting, with amendments,

Article 81 — Revenue and Taxes

Section 374A

Annotated Code of Maryland

(1975 Replacement Volume and 1977 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 81 — Revenue and Taxes

3 26.

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

(II) SALES OF TANGIBLE PERSONAL PROPERTY TO A PERSON
UNDER CONTRACT TO INCORPORATE SUCH PROPERTY INTO REALTY IN
ANOTHER STATE OR THE DISTRICT OF COLUMBIA WHERE THE PURCHASE
OR USE OF SUCH TANGIBLE PERSONAL PROPERTY WOULD NOT BE
SUBJECT TO A SALES, USE, OR SIMILAR TAX IN SUCH
JURISDICTION. CLAIM FOR THIS EXEMPTION SHALL NOT BE MADE AT
THE TIME OF SALE BUT SHALL BE MADE SOLELY BY APPLICATION FOR
REFUND TO THE COMPTROLLER FOR TAXES PREVIOUSLY PAID
FOLLOWING INCORPORATION OF THE TANGIBLE PERSONALTY INTO THE
REALTY. THE COMPTROLLER IS AUTHORIZED TO ADOPT REGULATIONS
TO EFFECTUATE THIS EXEMPTION, INCLUDING REGULATIONS
REQUIRING EVIDENCE OF THE USE OF TANGIBLE PERSONAL PROPERTY,
AND SATISFACTORY PROOF OF ENTITLEMENT TO EXEMPTION IN OTHER
JURISDICTIONS.

374A.

The use tax shall be paid on the purchase price of all
taxable personal property which is purchased for storage in
Maryland on and after July 1, 1969. Taxable personal
property intended solely for use in other states, but which
is stored in Maryland pending shipment to another state
shall not be subject to the use tax. THE TERM "SOLELY FOR
USE IN OTHER STATES" SHALL NOT BE CONSTRUED TO EXCLUDE FROM
THE PROVISIONS OF THIS SECTION TANGIBLE PERSONAL PROPERTY