Ch. 401                                   1993 LAWS OF MARYLAND

SECTION 6, AND BE IT FURTHER ENACTED, That Sections 1, 2, 4 and 5 of this
Act shall take effect on June 1, 1993.

SECTION 7. AND BE IT FURTHER ENACTED, That Section 3 of the Act shall
take effect on June 1, 1995.

Approved May 27, 1993.

CHAPTER 401
(Senate Bill 660)

AN ACT concerning                                                                                                           

Sales and Use Tax - Research and Development

FOR the purpose of altering the exemption from the sales and use tax for sales of certain
property used in research and development in a certain manner; repealing the
exemption from the sales and use tax for sales of certain machinery or equipment
used for research and development; and generally relating to the applicability of the
sales and use tax to research and development.

BY repealing and reenacting, with amendments,                                       

Article - Tax - General                                                                                   

Section 11-210(b) and 11-21                                       

Annotated Code of Maryland
(1988 Volume and 1992 Supplement)

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 of
replacement part that:

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

(ii) is not used in administration, management, sales, or any other
nonoperational activity;

(iii) at any stage of operation from the handling of raw material or
components on the production activity site to the time the product is ready for delivery or
storage, is used[:

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