Martin O'Malley, Governor

Ch. 6

(ii) after review and comment by the budget committees, the
Governor may provide funding in fiscal years 2008 or 2009 through a supplemental
budget to implement elements of the report.

SECTION 8. AND BE IT FURTHER ENACTED. That the Comptroller shall
adopt regulations that will exempt from the increase in the rate of the sales and use
tax under § 11-104 of the Tax - General Article as enacted by Section 1 of this Act any
otherwise taxable sales of tangible personal property to contractors or builders to be
used for the construction, repair, or alteration of real property, on contracts entered
into prior to the effective date of the sales and use tax increase under § 11-104 of the
Tax - General Article as enacted by Section 1 of this Act. The exemption may be in the
form of a refund, credit, or. to the extent practicable, deduction at the time of sale. The
regulations shall be applicable only with respect to the 1% increase in the rate of the
sales and use tax which becomes effective January 3. 2008.

SECTION 9. AND BE IT FURTHER ENACTED. That all cigarettes used.
possessed, or held in the State on or after January 1, 2008. by any person for sale or
use in the State, shall be subject to the full tobacco tax of $2.00 on cigarettes imposed
by this Act. This requirement includes: (1) cigarettes in vending machines or other
mechanical dispensers: and (2) cigarettes (generally referred to as "floor stock") in
packages which already bear stamps issued by the Comptroller under the State
Tobacco Tax Act but for an amount less than the full tax imposed on $1 for each 10
cigarettes or fractional part thereof; all cigarettes held for sale by any person in the
State on or after January 1, 2008, that bear a stamp issued by the Comptroller of a
value less than $2.00 for each pack of 20 cigarettes must be stamped with the
additional stamps necessary to make the aggregate tax value equal to $2.00. The
Comptroller may provide an alternative method of collecting the additional tax. The
revenue attributable to this requirement shall be remitted to the Comptroller by April
30, 2008. Except as otherwise provided in this Section, on or after January 1. 2008. no
Maryland stamp shall be used except the stamp issued by the Comptroller to evidence
the tobacco tax on cigarettes of $2.00 imposed by this Act.

SECTION 3. 10. AND BE IT FURTHER ENACTED, That § 13-809 §§ 13-802
and 13-809 of the Transportation Article as enacted by Section 1 4 of this Act shall be
applicable to all certificates of title issued in the State on or after January 1, 2008, and
to all motor vehicles, trailers, or semitrailers subject to the excise tax that are in
interstate operation and registered under § 13-109(c) or (d) of the Transportation
Article without a certificate of title on or after January 1, 2008.

SECTION 1. AND BE IT FURTHER ENACTED, That each person holding
tax paid motor fuel for sale at the start of business on January 1, 2008, shall compile
and file an inventory of the motor fuel held at the close of business on December 31,
2007, and remit within 30 days any additional motor fuel tax that is due on the motor

fuel.

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