PARRIS N. GLENDENING, Governor                            H.B. 948

BY repealing and reenacting, with amendments,
Article - Tax - General
Section 11-210(b)(1)
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

11-210.

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

(1) machinery or equipment, a replacement part of machinery or
equipment, or a service for the assembly or fabrication of machinery or equipment or
replacement part that:

(i) is capitalized to claim depreciation, using acceptable and
consistent accounting standards;

[(ii) is not used in administration, management, sales, or any other
nonoperational activity;]

[(iii)] (II) at any stage of operation from the handling of raw material or
components on the production activity site to the time the product is ready for delivery or
storage, is used PREDOMINANTLY in a production activity; and

[(iv)] (III) except for a foundation to support other machinery or
equipment or for an item required to conform to an air or water pollution law and
normally considered part of real property, is not installed so that it becomes real
property; or

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall remain
effective for a period of two and one-half years and, at the end of June 30, 1999, with no
further action required by the General Assembly, this Act shall be abrogated and of no further
force and effect.

SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall

take effect contingent on the taking effect of Chapter______(S.B. 190) of the Acts of the

General Assembly of 1996, and if Chapter _____(S.B. 190) does not become effective,

Section 2 of this Act shall be null and void without the necessity of further action by the
General Assembly.

SECTION 2. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1996 January 1, 1997.

May 23, 1996

The Honorable Casper R. Taylor, Jr.

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