Ch. 2                                    LAWS OF MARYLAND

(II) AN EXERCISE OF A RIGHT OR POWER OVER
TANGIBLE PERSONAL PROPERTY OR A TAXABLE SERVICE ACQUIRED BY A
SALE FOR USE 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 PRODUCTION ACTIVITY, IF THE
CONSUMPTION OCCURS WITHIN 1 YEAR AFTER THE PROPERTY IS FIRST USED
IN A PRODUCTION ACTIVITY.

REVISOR'S NOTE: Paragraphs (l)(i), (2), and (3) of this
subsection are new language derived without
substantive change from former Art. 81, § 372(i)(5)
and the first sentence of (2) and the first sentence
of (d).

Paragraph (l)(ii) of this subsection is new language
added to encompass those items that formerly were
included in references to "tangible personal property"
but that, in this section, are defined separately as
"taxable service[s]".

Paragraph (3)(ii) of this subsection is new language
substituted for the second sentence of former Art. 81,
§ 372(d), which excluded certain purchases and use of
tangible personal property by cross-reference to
former Art. 81, § 324(f)(i), (ii), and (iii). The
substituted language conforms to the revision of §
324(f) in subsection (e)(3)(ii) of this section.

In paragraphs (1) through (3) of this subsection, the
word "use" is substituted as the defined term, for the
former list "[u]se, storage, or consumption", for
clarity and brevity. In the introductory language of
paragraphs (1) and (2) of this subsection, however,
the words "consume" and "store" are added to preserve
the broad scope suggested in the former list.

Also in the introductory language of paragraphs (1)
and (2) of this subsection, the word "possess" is
substituted for the former references to "the keeping
or retention ... for any purpose", for clarity.

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