Section 11-209 - Casual and isolated sale; distribution or transfer of tangible personal property. - Maryland Statutes

§ 11-209. Casual and isolated sale; distribution or transfer of tangible personal property.
 

(a)  Casual and isolated sale.- The sales and use tax does not apply to a casual and isolated sale by a person who regularly does not sell tangible personal property or a taxable service if: 

(1) the sale price is less than $1,000; and 

(2) the sale is not made through an auctioneer or a dealer. 

(b)  Distributions.- The sales and use tax does not apply to a distribution of tangible personal property 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)  Transfers.-  

(1) The sales and use tax does not apply to a transfer of tangible personal property: 

(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 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. 
 

[An. Code 1957, art. 81, §§ 326, 326A, 375; 1988, ch. 2, § 1; 1992, ch. 536; 1994, ch. 3, § 1.]