Ch. 2

LAWS OF MARYLAND

(I)  A SALE OF TANGIBLE PERSONAL PROPERTY FOR
USE OR RESALE IN THE FORM OF REAL ESTATE BY A BUILDER,
CONTRACTOR, OR LANDOWNER; AND

(II)  EXCEPT AS PROVIDED IN PARAGRAPH (3)(I) OF
THIS SUBSECTION, USE OF TANGIBLE PERSONAL PROPERTY AS FACILITIES,
TOOLS, TOOLING, MACHINERY, OR EQUIPMENT, INCLUDING DIES, MOLDS,
AND PATTERNS, EVEN IF THE BUYER INTENDS TO TRANSFER TITLE TO THE
PROPERTY BEFORE OR AFTER THAT USE.

(3) "RETAIL SALE" DOES NOT INCLUDE:

(I)  A TRANSFER OF TITLE TO TANGIBLE PERSONAL
PROPERTY AFTER ITS USE AS FACILITIES, TOOLS, TOOLING, MACHINERY,
OR EQUIPMENT, INCLUDING DIES, MOLDS, AND PATTERNS, IF:

1.  AT THE TIME OF PURCHASE, THE BUYER IS
OBLIGATED, UNDER THE TERMS OF A WRITTEN CONTRACT, TO MAKE THE
TRANSFER; AND

2.  THE TRANSFER IS MADE FOR THE SAME OR
GREATER CONSIDERATION TO THE PERSON FOR WHOM THE BUYER
MANUFACTURES GOODS OR PERFORMS WORK; OR

(II)  A SALE OF TANGIBLE PERSONAL PROPERTY IF
THE BUYER INTENDS TO:

1.  RESELL THE TANGIBLE PERSONAL PROPERTY
IN THE FORM THAT THE BUYER RECEIVES OR IS TO RECEIVE THE
PROPERTY;

2.  USE OR INCORPORATE THE TANGIBLE
PERSONAL PROPERTY IN A PRODUCTION ACTIVITY AS A MATERIAL OR PART
OF OTHER TANGIBLE PERSONAL PROPERTY TO BE PRODUCED FOR SALE; OR

3.  CONSUME THE TANGIBLE PERSONAL PROPERTY
DIRECTLY AND PREDOMINANTLY IN A PRODUCTION ACTIVITY BY
DESTROYING, USING UP, OR WEARING OUT THE PROPERTY, OTHER THAN
THROUGH OBSOLESCENCE, TO THE EXTENT THAT THE PROPERTY CANNOT BE
RENDERED FIT FOR FURTHER USE IN A PRODUCTION ACTIVITY, IF THE
CONSUMPTION OCCURS WITHIN 1 YEAR AFTER THE PROPERTY IS FIRST USED
IN A PRODUCTION ACTIVITY.

REVISOR'S NOTE: This subsection is new language derived
without substantive change from former Art. 81, §
372(h) and the exclusion of some production activities
in (i)(3) and the first through fourth sentences of §
324(f) and item (6), the first sentence of item (3.),
and the exclusion of some production activities in
item (4) of the seventh sentence.

In paragraphs (1) through (3) of this subsection, the
former alternative defined term "sale at retail" is
deleted as redundant.

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