HARRY HUGHES, Governor                                 3011

(1975 Replacement Volume and 1979 Supplement)

BY repealing and reenacting, with amendments,

Article 81 - Revenue and Taxes

Section 338

Annotated Code of Maryland

(1975 Replacement Volume and 1979 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be repealed, amended, or enacted to read as follows: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" means the sale
in any quantity or quantities of any tangible personal

property or service taxable under the terms of this

subtitle. The 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, OTHER THAN ANY PROPERTY, EXCEPT CIGARETTES, TO BE
SOLD THROUGH A COIN OPERATED VENDING MACHINE, the property
so transferred in the form in which the same is, or is to

be, received by him, (ii) to consume the property so

transferred directly and predominantly in manufacturing,
assembling, processing, or refining of tangible personal
property for sale or in the generation of electricity, if
the consumption occurs within 1 year after the tangible

personal property first is used for or applied to any of

these purposes, or (iii) to use or incorporate the property
so transferred as a material or part of other tangible
personal property to be produced for sale, OTHER THAN

PROPERTY, EXCEPT CIGARETTES, TO BE SOLD THROUGH A

COIN OPERATED VENDING MACHINE, by manufacturing, assembling,

processing or refining. Tangible personal property is

"consumed" if it is destroyed, used up, or worn out to the
degree or extent that the property cannot be repaired,

reconditioned, or rendered fit for further use in

manufacturing, assembling, processing, or refining or in
generating electricity. "Consumed" does not mean or include
mere obsolescense. 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:

(1) The sale of alcoholic beverages.