WILLIAM DONALD SCHAEFER, Governor

Ch. 2

A BUYER IS ALLOWED A DEPRECIATION ALLOWANCE AS AN ADJUSTMENT
TO TAXABLE PRICE IF:

(1)  TANGIBLE PERSONAL PROPERTY OR A TAXABLE SERVICE
IS ACQUIRED BEFORE THE TANGIBLE PERSONAL PROPERTY IS BROUGHT INTO
THE STATE FOR USE IN THE STATE OR BEFORE THE TAXABLE SERVICE IS
USED IN THE STATE; AND

(2)  THE USE FIRST OCCURS IN ANOTHER STATE OR FEDERAL
JURISDICTION.

(B) AMOUNT OF ALLOWANCE.

THE ALLOWANCE UNDER SUBSECTION (A) OF THIS SECTION FOR EACH
FULL YEAR THAT FOLLOWS THE DATE OF PURCHASE IS 10% OF THE TAXABLE
PRICE PAID TO ACQUIRE THE TANGIBLE PERSONAL PROPERTY OR TAXABLE
SERVICE.

REVISOR'S NOTE: Subsection (a)(1) of this section is new
language added to clarify that this section applies
only to a use, in the State, of property previously
acquired by a sale that is not taxed in this State as
a retail sale.

Subsections (a)(2) and (b) of this section are new
language derived without substantive change from
former Art. 81, § 373(b).

In the introductory language of subsection (a) of this
section, the reference to "a depreciation allowance as
an adjustment to taxable price" is substituted for the
former reference to allowing a credit "in computing
the tax imposed by this subtitle", for clarity.

Defined terms: "Buyer" § 11-101

"State" § 1-101

"Tangible personal property" § 11-101

"Taxable price" § 11-101 "Taxable service" § 11-101

"Use" § 11-101

SUBTITLE 4. TAX COLLECTION.

11-401. VENDOR.

(A)  TRUSTEE FOR STATE.

A VENDOR IS A TRUSTEE FOR THE STATE AND IS LIABLE FOR THE
COLLECTION OF THE SALES AND USE TAX FOR AND ON ACCOUNT OF THE
STATE.

(B)  COLLECTION RIGHTS.

A VENDOR HAS THE SAME RIGHTS TO COLLECT THE SALES AND USE
TAX FROM A BUYER AND THE SAME RIGHTS REGARDING THE NONPAYMENT OF
THE SALES AND USE TAX BY A BUYER THAT THE VENDOR WOULD HAVE IF

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