PARRIS N. GLENDENING, Governor                             Ch. 126

CHAPTER 126
(Senate Bill 152)

AN ACT concerning

Sales and Use Tax - Long-Term Vehicle Leases

FOR the purpose of exempting from the sales and use tax certain leases of motor
vehicles; and providing for the application of this Act.

BY repealing and reenacting, with amendments,
Article - Tax - General
Section 11-221 (a)
Annotated Code of Maryland
(1988 Volume and 1994 Supplement)

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

Article - Tax - General

11-221.

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

(1)     a sale of an admission by a person whose gross receipts from the sale are
subject to the admissions and amusement tax;

(2)     a sale of a communication service, other than a taxable service, rendered
by a person whose charge for a communication service is or would be subject to the
federal excise tax as described in § 4251 of the Internal Revenue Code in effect on July 1,
1979;

(3)     a sale of a motor fuel that is subject to the motor fuel tax or the motor
carrier tax;

(4)     except for a rental, a sale of a motor vehicle, other than a house or office
trailer, that is subject to the motor vehicle excise tax under § 13-809 or § 13-811 of the
Transportation Article;

(5)     A LEASE OF A MOTOR VEHICLE THAT IS LEASED FOR A PERIOD OF
AT LEAST 1 YEAR;

[(5)] (6) a rental of a motion picture, motion picture trailer, or advertising
poster for display on theater premises by a person whose gross receipts from the activity
related to the rental is subject to the admissions and amusement tax; or

[(6)](7) except for a rental, a sale of a vessel that is subject to the excise tax
under § 8-716 of the Natural Resources Article.

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