WILLIAM DONALD SCHAEFER, Governor                    Ch. 342

Article 81 - Revenue and Taxes

Section 326(i)

Annotated Code of Maryland

(1980 Replacement Volume and 1986 Supplement)

Preamble

WHEREAS, The Central Maryland Chapter of the American Red
Cross provides vital services to the residents of Maryland, its
vital role in the recent Amtrak tragedy being one among many
examples of a its unwaivering commitment and contribution to this
State; and

WHEREAS, The American Red Cross being somewhat unique, is
both an instrumentality of the United States and a charitable
nonprofit organization receiving no budgetary appropriation from
the federal government, and charged in 1905 by the United States
Congress to carry its humanitarian mission worldwide and to be
the disaster relief agency for the entire nation; and

WHEREAS, The State of Maryland exempts from the State sales
tax all nonprofit religious, charitable, and educational
institutions and organizations when such tangible personal
property is purchased for use in carrying on the work of such
institutions and organizations, provided that the term
"institution or organization" does not include the United States
of America or any agency or instrumentality thereof; and

WHEREAS, The American Red Cross was exempt from the Maryland
sales tax as recently as 1984, at which time departmental
research into the organization's status suggested that its
identity as a federal instrumentality took precedence over its
nonprofit charitable status; and

WHEREAS, The American Red Cross, based on its unique
characteristics, is more similar to nonprofit charitable
organizations who qualify for the sales tax exemption and less
similar to the United States government and its

instrumentalities, and merits special consideration with regard
to the State retail sales tax; now, therefore,

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

Article 81 - Revenue and Taxes

326.

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

(i) (1) Sales to a nonprofit religious, charitable, or
educational institution or organization or a volunteer fire

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