Maryland Code, TAX – GENERAL 11-209
Terms Used In Maryland Code, TAX - GENERAL 11-209
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
- Personal property: All property that is not real property.
(1) the sale price is less than $1,000; and
(2) the sale is not made through an auctioneer or a dealer.
(b) The sales and use tax does not apply to a distribution of tangible personal property, a digital code, or a digital product by:
(1) a corporation or joint-stock company to its stockholders as a liquidating distribution;
(2) a partnership to a partner; or
(3) a limited liability company to a member.
(c) (1) The sales and use tax does not apply to a transfer of tangible personal property, a digital code, or a digital product:
(i) under a reorganization within the meaning of § 368(a) of the Internal Revenue Code;
(ii) on organization of a corporation or joint-stock company, to the corporation or company principally in consideration for the issuance of its stock;
(iii) to a partnership only as a contribution to its capital or in consideration for a partnership interest in the partnership; or
(iv) to a limited liability company only as a capital contribution or in consideration for an interest in the limited liability company.
(2) For a transfer that would qualify as a casual and isolated sale under subsection (a) of this section if the sale price limitation were disregarded, the amount of liability transferred to or assumed by a corporation, joint-stock company, partnership, or limited liability company shall be excluded from the consideration transferred by the corporation, joint-stock company, partnership, or limited liability company in exchange for the tangible personal property, digital code, or digital product to determine whether the transfer is made:
(i) principally in consideration for the issuance of stock of a corporation or joint-stock company;
(ii) only as a contribution to the capital of a partnership or in consideration for a partnership interest; or
(iii) only as a capital contribution to a limited liability company or in consideration for an interest in a limited liability company.