1. (a) The sales and use tax does not apply to:

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

      1. (i) is bought outside this State;
      2. (ii) is intended solely for use in another state; and
      3. (iii) is stored in this State pending shipment to another state;
   2. (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. (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.

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

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

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

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

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

      1. (i) evidence of use or removal of the property from the State; and
      2. (ii) satisfactory proof of entitlement to exemption in another state.

Added as Tax-General § 11-215 by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Renumbered as Tax-General § 11-216 by Acts 1988, c. 337, § 1. Amended by Acts 1991, c. 514; Acts 2021, c. 669, § 1, eff. May 30, 2021.

Formerly Art. 81, §§ 326, 374A, 375.