Ch. 589                                     1993 LAWS 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

11-101.

(d)     (1) "Production activity" means:

(i) except for processing food or a beverage by a retail food vendor,
assembling, manufacturing, processing, or refining tangible personal property for resale;

(ii) generating electricity; and                                                 

(iii) laundering, maintaining, or preparing textile products for rental.

(2) "Production activity" does riot include:

(i) servicing or repairing tangible personal property;

(ii) maintaining tangible-personal property, except textile products for
rental; OR

(iii) [testing finished products; or                                     

(iv)] providing for the comfort or health of employees.

(e)     (1) "Retail sale'" means the sale of:

(i) tangible personal property; or
(ii) a taxable service.

(2)     "Retail sale" includes:

             (i) a sale of tangible personal property for use or resale in the form of

real estate by a builder, contractor, or landowner; and                                     

(ii) except as provided in paragraph (3)(i) of this subsection, use of
tangible personal property as facilities, tools, tooling, machinery, or equipment, including
dies, molds, and patterns, even if the buyer intends to transfer title to the property before
or after that use.                                                                                                 

(3)     "Retail sale" does not include:

(i) a transfer of title to tangible personal property after its use as
facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns, if:

1.       at the time of purchase, the buyer is obligated, under the
terms of a written contract, to make the transfer; and

2.       the transfer is made for the same or greater consideration to
the person for whom the buyer manufactures goods or performs work;

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