WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

REVISOR'S NOTE: This subsection is new language derived
without substantive change from former Art. 81, §
372(i)(l) and (6) and items (2) and (7) of the seventh
sentence of § 324(f).

This subsection is rephrased as a    definition of

"taxable service", rather than as part of the

definition of "tangible personal property", for
clarity.

In item (1) of this subsection, the former phrase "for
a consideration" is deleted as surplusage.

In item (2) of this subsection, the defined term
"buyer" is substituted for the former word "person",
for clarity.

Defined terms: "Buyer" § 11-101
"Tangible personal property" § 11-101

(K) USE.

(1)  "USE" MEANS AN EXERCISE OF A RIGHT OR POWER TO
USE, CONSUME, POSSESS, OR STORE THAT IS ACQUIRED BY A SALE FOR
USE OF:

(I)  TANGIBLE PERSONAL PROPERTY; OR

(II)  A TAXABLE SERVICE.

(2)  "USE" INCLUDES AN EXERCISE OF A RIGHT OR POWER TO
USE, CONSUME, POSSESS, OR STORE THAT IS ACQUIRED BY A SALE. FOR
USE OF TANGIBLE PERSONAL PROPERTY:

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

(II)  EXCEPT AS PROVIDED IN PARAGRAPH (3)(I) OF
THIS SUBSECTION, 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)  "USE" 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

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