Terms Used In Maryland Code, TAX - GENERAL 11-216

  • Contract: A legal written agreement that becomes binding when signed.
  • Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • including: means includes or including by way of illustration and not by way of limitation. See
  • 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.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • state: means :

    (1) a state, possession, territory, or commonwealth of the United States; or

    (2) the District of Columbia. See
(a) The sales and use tax does not apply to:

(1) a sale for use of tangible personal property, a digital code, or a digital product that:

(i) is bought outside this State;

(ii) is intended solely for use in another state; and

(iii) is stored in this State pending shipment to another state;

(2) a sale of tangible personal property to a person obligated under a contract to incorporate that property into real property located in another state where the purchase or use of that property would not be subject to a sales tax, use tax, or similar tax; or

(3) except for that portion of the purchase price allocable to intended viewing in this State, a sale of a series of images stored on video tape or in other optical or digital forms or electronic signals generated from these images to a cable or other nonbroadcast television network, if the images are intended for viewing by television viewers located outside the State.

(b) The sales and use tax shall be paid:

(1) on a sale under subsection (a)(1) of this section, when the tangible personal property is imported or stored in the State; and

(2) on a sale under subsection (a)(2) of this section, when the sale is made.

(c) A person who pays the sales and use tax under subsection (b) of this section may obtain the exemption by:

(1) filing a claim for refund with the Comptroller when the property is removed from the State; and

(2) providing the Comptroller with the evidence that the Comptroller requires by regulation, including:

(i) evidence of use or removal of the property from the State; and

(ii) satisfactory proof of entitlement to exemption in another state.