Ch. 2                                    LAWS OF MARYLAND

THE SALES AND USE TAX DOES NOT APPLY TO A SALE BY:

(1)  A BONA FIDE CHURCH OR RELIGIOUS ORGANIZATION, IF
THE SALE IS MADE FOR THE GENERAL PURPOSES OF THE CHURCH OR
ORGANIZATION;

(2)  A GIFT SHOP AT A MENTAL HOSPITAL THAT THE
DEPARTMENT OF HEALTH AND MENTAL HYGIENE OPERATES; OR

(3)  A HOSPITAL THRIFT SHOP THAT:

(I)  IS OPERATED BY ALL VOLUNTEER STAFF;

(II)  SELLS ONLY DONATED ARTICLES;

(III)  CONTRIBUTES THE PROFITS FROM SALES TO THE
HOSPITAL WITH WHICH THE SHOP IS ASSOCIATED; AND

(IV)  IS NOT OPERATED IN CONJUNCTION WITH A GIFT
SHOP OR ANOTHER RETAIL ESTABLISHMENT.

(C)  EXEMPTION CERTIFICATE REQUIRED.

TO QUALIFY AS AN ORGANIZATION TO WHICH A SALE IS EXEMPT
UNDER SUBSECTION (A)(3) OR (5) OF THIS SECTION, THE ORGANIZATION
SHALL FILE AN APPLICATION FOR AN EXEMPTION CERTIFICATE WITH THE
COMPTROLLER.

(D)  DETERMINATION LETTER.

THE COMPTROLLER MAY TREAT THE POSSESSION OF AN EFFECTIVE
DETERMINATION LETTER OF STATUS UNDER § 501(C)(3) OR (13) OF THE
INTERNAL REVENUE CODE FROM THE INTERNAL REVENUE SERVICE AS
EVIDENCE THAT AN ORGANIZATION QUALIFIES UNDER SUBSECTION (A)(3)
OR (5) OR (1) OF THIS SECTION, RESPECTIVELY.

REVISOR'S NOTE: Subsection (a)(1) of this section is new
language substituted for former Art. 81, §
326(aaa)(l), which repeated the description of an
exempt "cemetery" or "corporation chartered for the
disposal of bodies" in the referenced §
501(c)(13), for clarity and brevity. The effective
date is specified to ensure that the meaning of
subsection (a)(1) of this section will not change
inadvertently due to a federal amendment.

Subsections (a)(2) through (d) of this section are new
language derived without substantive change from
former Art. 81, § 326(u), (cc), (hh), (i)(l), (2), and
(3)(i) and (iii), (kk), (xx), and (aaa)(2) and, as it
extended exemptions under the former retail sales tax
to the former use tax, § 375(b).

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