Ch. 696

LAWS OF MARYLAND

(c) For fiscal year 1987, and each fiscal year thereafter,
the employer social security contributions paid by the State for
any eligible position in a county public library system may not
exceed 7.15 percent of that part of the salary paid which is
included within the social security wage base as defined in
federal law.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989.

Approved May 25, 1989.

CHAPTER 696

(House Bill 822)

AN ACT concerning

Sales and Use Tax - Research and Development

FOR the purpose of expanding the definition of "research and
development" for purposes of certain exemptions from the
sales and use tax; correcting an erroneous cross reference;
and generally relating to certain sales and use tax
exemptions.

BY repealing and reenacting, with amendments,

Article - Tax - General
Section ll-210(b) and 11-217
Annotated Code of Maryland
(1988 Volume)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Tax - General

11-210.

(b) The sales and use tax does not apply to a sale of:

(1) machinery or equipment, a replacement part of
machinery or equipment, or a service for the assembly or
fabrication of machinery or equipment or replacement part that:

(i) is capitalized to claim depreciation, using
acceptable and consistent accounting standards;

- 3998 -