Ch. 115                                   1996 LAWS OF MARYLAND

CHAPTER 115
(Senate Bill 179)

AN ACT concerning

Sales and Use Tax - Bakery Equipment

FOR the purpose of exempting from the sales and use tax certain sales of equipment used
by certain retail food vendors to manufacture or process bread or bakery goods for
resale; and generally relating to an exemption for the sales and use tax for certain
sales of equipment used by certain retail food vendors to manufacture or process
bread or bakery goods for resale.

BY repealing and reenacting, without amendments,
Article - Tax - General
Section 11-206(a)(7)
Annotated Code of Maryland
(1988 Volume and 1995 Supplement)

BY adding to

Article - Tax - General

Section 11-210(c)

Annotated Code of Maryland

(1988 Volume and 1995 Supplement)

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

Article - Tax - General

11-206.

(a) (7) "Substantial grocery or market business" means a business at which at
least 10% of all sales of food are sales of grocery or market food items, not including food
normally consumed on the premises even though it is packaged to carry out.

11-210.

(C) THE SALES AND USE TAX DOES NOT APPLY TO A SALE OF EQUIPMENT
THAT IS USED BY A RETAIL FOOD VENDOR TO MANUFACTURE OR PROCESS BREAD
OR BAKERY GOODS FOR RESALE IF:

(1)     THE TAXABLE PRICE OF THE EACH PIECE OF EQUIPMENT IS AT
LEAST $2,000; AND

(2)     THE RETAIL FOOD VENDOR OPERATES A SUBSTANTIAL GROCERY
OR MARKET BUSINESS, AS DEFINED IN § 11-206(A) OF THIS SUBTITLE, AT THE SAME
LOCATION WHERE THE FOOD IS SOLD.

- 1394 -