Maryland § 11-209

§ 11-209.

    (a)    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, a digital code, a digital product, 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)    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.