Section 5-104 - Exemptions. - Maryland Statutes

§ 5-104. Exemptions.
 

(a)  In general.-  

(1) The alcoholic beverage tax does not apply to an alcoholic beverage that is: 

(i) brought into the State by a person in accordance with: 

1. an import-export permit under Article 2B, § 2-101 (j) of the Code; 

2. a nonbeverage permit under Article 2B, § 2-101 (c) of the Code; or 

3. a nonresident storage permit under Article 2B, § 2-101 (p) of the Code; 

(ii) sold or delivered by a person who holds a Class E, F, or G alcoholic beverage license, while the licensee is operating an aircraft, vessel, or train outside boundaries of the State, including airspace and waterways; 

(iii) beer or wine that is family-produced and is brought into, possessed, or transported in the State by an individual who is a member of that family if: 

1. the individual is at least 21 years of age; and 

2. the beer or wine is for personal use or for entry in a licensed national family beer and wine exhibition; or 

(iv) brought into the State by a person for storage pending shipment outside of the State, if the alcoholic beverage: 

1. is not held for sale, consignment, or delivery in the State; 

2. is under a customs bond; and 

3. is stored in a public bonded warehouse. 

(2) The exemption under paragraph (1) (ii) of this subsection does not apply to an alcoholic beverage sold or delivered by a person who holds a Class E, F, or G alcoholic beverage license while the licensee is operating an aircraft, vessel, or train within the boundaries of the State, including airspace and waterways. 

(b)  Sale or use on federal reservation; sacramental or medicinal use; claim for exemption.-  

(1) The alcoholic beverage tax does not apply to: 

(i) an alcoholic beverage bought by a person whom a proper authority of the United States allows to buy alcoholic beverages for sale and use on a federal reservation in the State where the person is assigned; 

(ii) wine bought and used for sacramental purposes by a religious organization affiliated with and recognized by a generally acknowledged religious faith; or 

(iii) wine or distilled spirits bought and used for medicinal purposes by a bona fide hospital. 

(2) A person under paragraph (1) of this subsection who pays the alcoholic beverage tax may obtain the exemption by filing a claim for refund with the Comptroller. 

(c)  Consumer possession for personal use; claim for exemption.-  

(1) The alcoholic beverage tax does not apply to an alcoholic beverage that a consumer at least 21 years of age brings into the State for personal use: 

(i) if the quantity brought from within the continental United States does not exceed: 

1. at any one time, one quart; 

2. in 1 calendar month, two quarts; and 

3. a total of 1 gallon in the consumer's possession at any one time; 

(ii) if the quantity brought from American Samoa, Guam, or the Virgin Islands of the United States does not exceed 1 gallon; or 

(iii) if the total quantity brought from any other place outside the continental United States does not exceed 1 gallon, the 1st quart of that gallon. 

(2) A consumer under paragraph (1) (iii) of this subsection may obtain the exemption for the 1st quart by: 

(i) filing an application with the Comptroller on the form the Comptroller requires; and 

(ii) paying the alcoholic beverage tax on the quantity of alcoholic beverages that exceeds 1 quart. 
 

[An. Code 1957, art. 2B, §§ 3, 131; 1988, ch. 2, § 1; ch. 279; 1989, ch. 5, § 15; 1994, ch. 504; 1998, ch. 21, § 1.]