Terms Used In Maryland Code, TAX - GENERAL 11-222

  • Contract: A legal written agreement that becomes binding when signed.
The sales and use tax does not apply to a sale of deliverable end item testing equipment that is used to perform a contract for the United States Department of Defense and that, under the terms of the contract, is to be transferred to the federal government, if the contract is awarded as a result of a bid submitted after June 1, 1986.