1068

LAWS OF MARYLAND

Ch. 353

is, or is to be received by him, (ii) to destroy the
property so transferred in the manufacturing, 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 terms "manufacturing,"
"assembling," "processing," and "refining" shall not include

(A) maintaining, servicing, or repairing; (B) testing

finished products; or (C) providing for the comfort or
health of employees. For the purpose of the tax imposed by
this subtitle, the term "sale at retail" includes but is not
limited to the following:

(4) The sale of natural or artificial gas, oil,
electricity, coal, nuclear fuel assemblies, or steam when
made to any NONRESIDENTIAL purchaser for purposes other than
resale or for use in manufacturing, assembling, processing,
refining, or in the generation of electricity.

326.

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

(LL) NOTWITHSTANDING ANYTHING TO THE

CONTRARY IN THIS SUBTITLE, SALES AT RETAIL OF NATURAL AND

ARTIFICIAL GAS, OIL, ELECTRICITY, AND COAL USED FOR

RESIDENTIAL PURPOSES. THIS EXEMPTION APPLIES TO ALL OF THE

ABOVE FUELS USED FOR HEATING RESIDENTIAL DWELLINGS,

INCLUDING APARTMENTS.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.

[(jj) Until June 30, 1980, the (JJ) (1) THE amount of
the fuel rate adjustment included in the sales of natural or
artificial gas, electricity, or steam used in residential
properties including apartment dwellings. The fuel rate
adjustment shall be that amount of the sale above the base
rate approved by the Public Service Commission for those
fuels.-]—