WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, §
326(ee), (gg), (ss), (ddd), and the second sentence
and second clause of the first sentence of (g) and, as
it extended the exemptions under the former retail
sales tax to the former use tax, § 375(b).

In subsection (c)(1) of this section, the former
reference to use "in the movement of passengers or
freight, or both" is deleted as unnecessary in light
of the reference to use "interstate or foreign
commerce".

In subsection (c)(3) of this section, the former word
"lease" is deleted as included in the word "rental".

Defined terms: "Sale" § 11-101

"Sales and use tax" § 1-101 "State" § 1-101

"Tangible personal property" § 11-101

"Use" § 11-101

11-209. ISOLATED SALE.

(A)  CASUAL AND ISOLATED SALE.

THE SALES AND USE TAX DOES NOT APPLY TO A CASUAL AND
ISOLATED SALE BY A PERSON WHO REGULARLY DOES NOT SELL TANGIBLE
PERSONAL PROPERTY OR A TAXABLE SERVICE IF:

(1)  THE SALE PRICE IS LESS THAN $1,000; AND ,

(2)  THE SALE IS NOT MADE THROUGH AN AUCTIONEER OR A
DEALER.

(B)  DISTRIBUTIONS.

THE SALES AND USE TAX DOES NOT APPLY TO A DISTRIBUTION OF
TANGIBLE PERSONAL PROPERTY BY:

(1)  A CORPORATION OR JOINT-STOCK COMPANY TO ITS
STOCKHOLDERS AS A LIQUIDATING DISTRIBUTION; OR

(2)  A PARTNERSHIP TO A PARTNER.

(C)  TRANSFERS.

(1) THE SALES AND USE TAX DOES NOT APPLY TO A
TRANSFER OF TANGIBLE PERSONAL PROPERTY:

(I)  UNDER A REORGANIZATION WITHIN THE MEANING
OF § 368(A), § 371, OR § 374 OF THE INTERNAL REVENUE CODE;

(II)  ON ORGANIZATION OF A CORPORATION OR
JOINT-STOCK COMPANY, TO THE CORPORATION OR COMPANY PRINCIPALLY IN
CONSIDERATION FOR THE ISSUANCE OF ITS STOCK; OR

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