Ch. 2                                        LAWS OF MARYLAND

(III) TO A PARTNERSHIP ONLY AS A CONTRIBUTION
TO ITS CAPITAL OR IN CONSIDERATION FOR A PARTNERSHIP INTEREST IN
THE PARTNERSHIP.

(2) FOR A TRANSFER THAT WOULD QUALIFY AS A CASUAL AND
ISOLATED SALE UNDER SUBSECTION (A) OF THIS SECTION IF THE SALE
PRICE LIMITATION WERE DISREGARDED, THE AMOUNT OF LIABILITY
TRANSFERRED TO OR ASSUMED BY A CORPORATION, JOINT-STOCK COMPANY,
OR PARTNERSHIP SHALL BE EXCLUDED FROM THE CONSIDERATION
TRANSFERRED BY THE CORPORATION, COMPANY, OR PARTNERSHIP IN
EXCHANGE FOR THE TANGIBLE PERSONAL PROPERTY TO DETERMINE WHETHER
THE TRANSFER IS MADE:

(I)   PRINCIPALLY IN CONSIDERATION FOR THE
ISSUANCE OF STOCK OF A CORPORATION OR JOINT-STOCK COMPANY; OR

(II)   ONLY AS A CONTRIBUTION TO THE CAPITAL OF A
PARTNERSHIP OR IN CONSIDERATION FOR A PARTNERSHIP INTEREST.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, §§
326(e) and 326A and, as it extended the exemptions
under the former retail sales tax to the former use
tax, § 375(b).

In the introductory language of subsection (a), of this
section, the defined term "person" is substituted for
the former word "vendor" to clarify that any person
may make the sale.

In subsections (b)(1) and (c)(l)(ii) and (2) of this
section, the references to a "joint-stock company" are
added to incorporate the substance of former Art. 81,
§ 2(1), which defined "corporation" to include a
joint-stock company and an association. In light of
the references to stock, references to an association
are not added.

In subsection (c)(2) of this section, the reference to
the "amount" of liability being "excluded from" the
consideration is substituted for the former references
to the liabilities not being "deemed" to be a
consideration, for clarity.

Defined terms: "Internal Revenue Code" § 1-101
"Person" §§ 1-101 and 11-101 "Sale" § 11-101
"Sales and use tax" § 1-101
"Tangible personal property" § 11-101
"Taxable service" § 11-101 "Vendor" § 11-101

11-210. MACHINERY AND EQUIPMENT.

(A) PRODUCTION OF BITUMINOUS CONCRETE.

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