VETOES

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
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 OP
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
company or department or volunteer ambulance company or rescue
squad situated in this State when such tangible personal property
is purchased for use in carrying on the work of such institution
or organization[; provided that].

(2)  (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF
THIS PARAGRAPH, AS USED IN THIS SUBSECTION the term "institution
or organization" shall not include the United States of America
or any agency or instrumentality thereof.

(II) AS USED IN THIS SUBSECTION, THE TERM
"INSTITUTION OR ORGANIZATION" INCLUDES THE AMERICAN NATIONAL RED
CROSS.

(3)  (I) An institution or organization seeking to
qualify for exemption under the terms of this subsection shall
apply to the Comptroller for a certificate of exemption.

(II) A vendor may not recognize the exemption
created by this subsection unless the purchaser possesses a valid
certificate of exemption issued by the Comptroller.

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