EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0800*
SENATE BILL 800
Q4 2lr2651
CF HB 1002
By: Senator Guzzone
Introduced and read first time: February 7, 2022
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Sales and Use Tax – Electricity for Agricultural Purposes – Exemption 2
FOR the purpose of providing an exemption from the sales and use tax for the sale of 3
electricity used for agricultural purposes under certain circumstances; and generally 4
relating to a sales and use tax exemption for agricultural purposes. 5
BY repealing and reenacting, with amendments, 6
Article – Tax – General 7
Section 11–201(a) 8
Annotated Code of Maryland 9
(2016 Replacement Volume and 2021 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Tax – General 13
11–201. 14
(a) The sales and use tax does not apply to a sale of the following items for an 15
agricultural purpose: 16
(1) livestock; 17
(2) feed or bedding for livestock; 18
(3) seed, fertilizer, fungicide, herbicide, or insecticide; 19
(4) baler twine or wire; 20
(5) fuel for use in farm equipment or a farm tractor, as defined in §§ 21 2 SENATE BILL 800
11–120 and 11–121 of the Transportation Article; and 1
(6) if bought by a farmer: 2
(i) a container to transport farm products that the farmer raises to 3
market; 4
(ii) a farm vehicle, as defined in § 13–911(c) of the Transportation 5
Article, when used in farming; 6
(iii) a milking machine, when used in farming; 7
(iv) fabrication, processing, or service, by a sawmill, of wood products 8
for farm use in which the farmer retains title; [and] 9
(v) farm equipment when used to: 10
1. raise livestock; 11
2. prepare, irrigate, or tend the soil; or 12
3. plant, service, harvest, store, clean, dry, or transport seeds 13
or crops; AND 14
(VI) ELECTRICITY WHEN USE D TO: 15
1. RAISE LIVESTOCK OR P OULTRY; 16
2. PREPARE, IRRIGATE, OR TEND THE SOIL ; OR 17
3. PLANT, SERVICE, HARVEST, STORE, CLEAN, DRY, OR 18
TRANSPORT SEEDS OR C ROPS. 19
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20
1, 2022. 21