WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

(1)  "PRODUCTION ACTIVITY" MEANS:

(I)  ASSEMBLING, MANUFACTURING, PROCESSING, OR
REFINING TANGIBLE PERSONAL PROPERTY FOR RESALE;

(II)  GENERATING ELECTRICITY; AND

(III)  LAUNDERING, MAINTAINING, OR PREPARING
TEXTILE PRODUCTS FOR RENTAL.

(2)  "PRODUCTION ACTIVITY" DOES NOT INCLUDE:

(I)  SERVICING OR REPAIRING TANGIBLE PERSONAL
PROPERTY;

(II)  MAINTAINING TANGIBLE PERSONAL PROPERTY,
EXCEPT TEXTILE PRODUCTS FOR RENTAL;

(III)  TESTING FINISHED PRODUCTS; OR

(IV)  PROVIDING FOR THE COMFORT OR HEALTH OF
EMPLOYEES.

REVISOR'S NOTE: This subsection is new language derived
without substantive change from the fifth and sixth
sentences and the references to manufacturing,
assembling, processing, and refining and to generating
electricity in item (ii) of the second sentence of
former Art. 81, § 324(f).

The term "production activity" is substituted, as the
defined term, for the former terms "manufacturing",
"assembling", "processing", and "refining", for
clarity and brevity.

In paragraph (l)(iii) of this subsection, the former
word "leasing" is deleted as included in the word
"rental".

In paragraph (2)(ii) of this subsection, the phrase
"except textile products for rental" is substituted
for the former phrase "[e]xcept for the above", for
clarity.

Defined term: "Tangible personal property" § 11-101

(E) RETAIL SALE.

(1)  "RETAIL SALE" MEANS THE SALE OF:

(I)  TANGIBLE PERSONAL PROPERTY; OR

(II)  A TAXABLE SERVICE.

(2)  "RETAIL SALE" INCLUDES:

- 389 -