Maryland Code, TAX – GENERAL 9-303
Terms Used In Maryland Code, TAX - GENERAL 9-303
(b) The motor fuel tax does not apply to special fuel:
(1) containing dye and sold for uses other than in a licensed motor vehicle;
(2) delivered into a tank used only for heating; or
(3) used for any purpose other than propelling a motor vehicle or turbine-powered aircraft.
(c) The motor fuel tax does not apply to aviation fuel that is bought for use by:
(1) a carrier engaged in the common carriage of individuals or property under Parts 121, 127, and 129 of the Federal Aviation Regulations;
(2) an operator under Part 135 of the Federal Aviation Regulations if at least 70% of the aviation fuel is used in the common carriage of individuals or property;
(3) the State;
(4) a political subdivision of the State;
(5) a unit or instrumentality of the United States government; or
(6) a foreign government.
(d) The motor fuel tax does not apply to motor fuel that is bought by:
(1) the Department of General Services for use by State agencies;
(2) a county board of education for use in a school bus owned by the county board of education; or
(3) a school bus operator under contract with a county board of education for use in a school bus used to transport the county’s public school students.