H.B. 1258                                                      VETOES

(I) 1. (I) MARKET RESEARCH;

(II) 2. (II) RESEARCH IN THE SOCIAL SCIENCES OR
PSYCHOLOGY AND OTHER NONTECHNICAL ACTIVITIES;

(III) 3. (III) ROUTINE PRODUCT TESTING;

(IV) 4. (IV) SALES SERVICES; OR

(V) 5. (V) TECHNICAL AND NONTECHNICAL SERVICES; OR

(VI) RESEARCH AND DEVELOPMENT OF A PUBLIC UTILITY.

(B) TO THE EXTENT AUTHORIZED BY LAW BY THE GOVERNING BODY OF A
MUNICIPAL CORPORATION OR COUNTY, MACHINERY, EQUIPMENT, MATERIALS,
AND SUPPLIES CONSUMED IN OR USED PRIMARILY IN RESEARCH AND
DEVELOPMENT ARE EXEMPT, IN WHOLE OR IN PART, FROM VALUATION AND
PERSONAL PROPERTY TAX.

(B)      THE GOVERNING BODY OF A MUNICIPAL CORPORATION OR COUNTY
MAY GRANT A CREDIT AGAINST PERSONAL PROPERTY TAXES-DUE, IN WHOLE OR IN
PART, FOR ELIGIBLE EQUIPMENT OWNED BY A QUALIFYING COMPANY.

(C) NOTWITHSTANDING THE DEFINITION OF "ELIGIBLE EQUIPMENT" IN
SUBSECTION (A) OF THIS SECTION, A COUNTY OR MUNICIPAL CORPORATION MAY
ESTABLISH ADDITIONAL LIMITATIONS ON THE TYPES OF EQUIPMENT THAT MAY BE
ELIGIBLE TO RECEIVE A CREDIT AGAINST PERSONAL PROPERTY TAXES UNDER
THIS SECTION., BY LAW, A PROPERTY TAX CREDIT AGAINST THE COUNTY OR MUNICIPAL
CORPORATION PROPERTY TAX IMPOSED ON MACHINERY, EQUIPMENT, MATERIALS, AND
SUPPLIES:

(1) THAT ARE CONSUMED IN OR USED PRIMARILY IN RESEARCH AND
DEVELOPMENT; AND

(2) THE SALE OR USE OF WHICH IS EXEMPT FROM THE SALES AND USE TAX
UNDER § 11-210 OR § 11-217 OF THE TAX - GENERAL ARTICLE.

(C)      THE AMOUNT OF CREDIT GRANTED. UNDER THIS SECTION IS EQUAL TO THE
COUNTY OR MUNICIPAL CORPORATION PROPERTY TAX IMPOSED ON THE ASSESSMENT
OF THE PROPERTY DESCRIBED IN SUBSECTION (B) OF THIS SECTION IN EXCESS OF 25%
OF THE ORIGINAL COST OF THE PROPERTY.

(C) (D) THE GOVERNING BODY OF A MUNICIPAL CORPORATION OR A
COUNTY THAT ENACTS AUTHORIZES A PARTIAL OR TOTAL EXEMPTION CREDIT
UNDER SUBSECTION (B) OF ENACTS A CREDIT UNDER THIS SECTION SHALL SUBMIT A
COPY OF THE LAW TO THE DEPARTMENT.

(D) (E) IF THE DEPARTMENT RECEIVES A COPY OF THE LAW ON OR BEFORE
MARCH 1, THE EXEMPTION CREDIT SHALL BE EFFECTIVE FOR THE TAXABLE YEAR
IMMEDIATELY FOLLOWING PROPERTY PURCHASED OR TRANSFERRED INTO THE STATE
AFTER THE PRECEDING JANUARY 1.

- 3616 -