HARRY HUGHES, Governor                                     3587

Article 81 - Revenue and Taxes

Section 324(f)(3) and 372(i)(2)

Annotated Code of Maryland

(1980 Replacement Volume and 1983 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 81 - Revenue and Taxes

324.

(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 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 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 obsolescence. 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:

(3) The sale of tangible personal property to
contractors, builders or landowners for use or resale in the form
of real estate. FOR THE PURPOSES OF THIS SUBTITLE, WALL-TO-WALL
CARPETING RETAINS ITS CHARACTER AS TANGIBLE PERSONAL PROPERTY
UPON INSTALLATION, WITHOUT REGARD TO THE PURPOSE, METHOD, OR
PERMANENCY OF ITS ANNEXATION.

372.

(i) "Tangible personal property" means corporeal personal
property of any nature and shall include but not be limited to:

(2) Tangible personal property purchased for use or
resale in the form of real estate by contractors, builders, or