BLAIR LEE III,

Acting Governor

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of electricity by the State and which may be passed on
to the consumer.

BY repealing and reenacting, with amendments,

Article 81 - Revenue and Taxes

Section 324(f)(4)

Annotated Code of Maryland

(1975 Replacement Volume and 1977 Supplement)

BY adding to

Article 81 - Revenue and Taxes

Section 324 (i) (5) and (6) and 372(g)(5) and (6)

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be repealed, amended, or enacted to read as follows: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

324.

As used in this subtitle, the following terms shall
mean or include:

(f) "Retail sale" and "sale at retail" shall mean the

sale in any quantity or quantities of any tangible personal

property or service taxable under the terms of this

subtitle. Said term shall mean all sales of tangible

personal property to any person for any purpose other than
those in which the purpose of the purchaser is (i) to resell
the property so transferred in the form in which the same

is, or is to be received by him, (ii) to destroy the

property so transferred in the manufacturing, as assembling,
processing or refining of other tangible personal property
to be produced for sale or in the generation of electricity,

or (iii) to use or incorporate the property so transferred

as a material or part, or other tangible personal property
to be produced for sale by manufacturing, assembling,

processing or refining. Tangible personal property shall

be considered to be destroyed in manufacturing, processing,
assembling, refining or in the generation of electricity if
it is changed in nature by reason of its use in a relatively
short period of time, as the nature of coal is changed by
burning, as refractories which come in direct contact with
molten metals are changed by heat and abrasion, as grinding
wheels are reduced to dust, as acids are changed by

contamination, and so forth. Property which is broken or

mutilated shall not be considered to be destroyed.

Tangible personal property shall not be considered to be
destroyed in such operations if its value as property is
ordinarily dissipated through the gradual wear or tear

incident to its use. Machinery and small tools shall not

be considered to be destroyed in such operations. The