WILLIAM DONALD SCHAEFER, Governor

Ch. 2

Defined terms: "Sale" § 11-101
"Sales and use tax" § 1-101

11-218. SERVICES.

(A)  PERSONAL, PROFESSIONAL, OR INSURANCE SERVICE.

THE SALES AND USE TAX DOES NOT APPLY TO A PERSONAL,
PROFESSIONAL, OR INSURANCE SERVICE THAT INVOLVES A SALE AS AN
INCONSEQUENTIAL ELEMENT FOR WHICH NO SEPARATE CHARGE IS MADE.

(B)  CUSTOM COMPUTER SOFTWARE SERVICE.

THE SALES AND USE TAX DOES NOT APPLY TO A SALE OF CUSTOM
COMPUTER SOFTWARE SERVICES RELATING TO PROCEDURES AND PROGRAMS
THAT:

(1)  OTHERWISE ARE TAXABLE UNDER THIS TITLE;

(2)  ARE TO BE USED BY A SPECIFIC PERSON;

(3)  (I) ARE CREATED FOR THAT PERSON; OR

(II) CONTAIN STANDARD OR PROPRIETARY ROUTINES
THAT INCORPORATE SIGNIFICANT CREATIVE INPUT TO CUSTOMIZE THE
PROCEDURES AND PROGRAMS FOR THAT PERSON; AND

(4)  DO NOT CONSTITUTE A PROGRAM, PROCEDURE, OR
DOCUMENTATION THAT IS MASS PRODUCED AND SOLD TO:

(I)  THE GENERAL PUBLIC; OR

(II)  PERSONS ASSOCIATED IN A TRADE, PROFESSION,
OR INDUSTRY.

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

In item (2) of this section, the former word
"exclusively" is deleted as unnecessary in light of
item (4) of this section.

In item (3)(ii) of this section, the words "to
customize the procedures and programs for that person"
are substituted for the former words "in order to
qualify for the exemption provided in this
subsection", for clarity.

Defined terms: "Person" §§ 1-101 and 11-101
"Sale" § 11-101 "Sales and use tax" § 1-101
"Use" § 11-101

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