Ch. 207

2004 LAWS OF MARYLAND

1.       Is qualified as tax exempt under § 501(c)(4) of the Internal
Revenue Code; and

2.       Is engaged in providing a program to render its best
efforts to contain, clean up, and otherwise mitigate spills of oil or other substances
occurring in United States coastal and tidal waters; and

(ii) Is used for the purposes of the organization.

(f)      (1) This subsection applies to possession within the State of a vessel if:

(i) The vessel was formerly:

1.       Titled or numbered in another jurisdiction; or

2.       Federally documented and principally used in another
jurisdiction;.

(ii) The present owner has paid a sales or excise tax on the vessel to
the other jurisdiction; and

(iii) The jurisdiction to which the tax was paid would allow an
exemption or credit under its sales or excise tax for excise tax on a vessel formerly
paid to the State.

(2)     For a vessel described in paragraph (1) of this subsection:

(i) If the rate of the tax paid to the other jurisdiction is not less
than the rate under subsection (c) of this section, the tax imposed under subsection (c)
of this section does not apply to possession of the vessel within the State;

(ii) If the rate of the tax paid to the other jurisdiction is less than
the rate under subsection (c) of this section, the rate of the tax imposed under
subsection (c) of this section on possession of the vessel within the State is the
difference between the tax rate paid to the other jurisdiction and the rate under
subsection (c) of this section; and

(iii) The Department may require the taxpayer to submit
satisfactory proof of the payment of a tax to another jurisdiction and the rate of tax
paid and, where applicable, evidence of principal use of a federally documented vessel
in another jurisdiction.

(3)     This subsection is applicable to any vessel incurring a liability for
Maryland boat excise tax on or after July 1, 1986.

(g)     (1) A person may claim a credit against any tax imposed under
subsection (c) of this section on a vessel for sales tax the person has paid to the State,
to another state, or to the District of Columbia on materials and equipment that are
incorporated into the vessel, if:

(i) 1. The person is licensed by the Department to catch, for
commercial purposes, finfish, eels, crabs, conch, terrapin, soft-shell clams, hard-shell
clams, oysters, or any other fish; and

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