Ch. 174

1996 LAWS OF MARYLAND

Section 7-225, 7-226, and 9-205

Annotated Code of Maryland

(1994 Replacement 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

11-227.

THE SALES AND USE TAX DOES NOT APPLY TO A SALE OF TANGIBLE PERSONAL
PROPERTY FOR USE OR CONSUMPTION IN:

(1) THE DEVELOPMENT OF:

(I) MAGNETICALLY STORED WRITTEN INSTRUCTIONS TO BE USED
DIRECTLY OR INDIRECTLY IN A COMPUTER TO BRING ABOUT A CERTAIN RESULT;
OR

(II) RELATED WRITTEN INSTRUCTIONS IN BOOKS, MANUALS, OR
ELECTRONIC TUTORIALS;

(2) THE DEVELOPMENT, PRODUCTION, OR ASSEMBLY OF COMPUTER
BOARDS, COMPONENTS, OR CHIPS; OR

(3)     THE DEVELOPMENT OR PRODUCTION OF CULTURES, DRUGS,
VACCINES, ANTIBODIES, OR OTHER RELATED MATERIALS FOR USE IN THE
BIOSCIENCES INDUSTRY.

Article - Tax - Properly

1-101.

(r) (1) "MANUFACTURING" MEANS THE PROCESS OF SUBSTANTIALLY
TRANSFORMING OR A SUBSTANTIAL STEP IN THE PROCESS OF SUBSTANTIALLY
TRANSFORMING TANGIBLE PERSONAL PROPERTY INTO A NEW AND DIFFERENT ARTICLE
OF TANGIBLE PERSONAL PROPERTY BY USE OF LABOR OR MACHINERY.

(2)     "Manufacturing" includes:

(1)     the operation of:

[(1)] (I) sawmills, grain mills, or feed mills; and

[(2)] (II) machinery and equipment used to extract and process minerals,
metals, or earthen materials or by-products that result from the extracting or processing;.

(2)     THE DEVELOPMENT OF:

(I) MAGNETICALLY STORED WRITTEN INSTRUCTIONS TO BE USED
DIRECTLY OR INDIRECTLY IN A COMPUTER TO BRING ABOUT A CERTAIN RESULT;
OR

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