1. (a) The sales and use tax does not apply to a personal, professional, or insurance service that:

   1. (1) is not a taxable service; and
   2. (2) involves a sale as an inconsequential element for which no separate charge is made.
2. (b) The sales and use tax does not apply to the sale of an optional computer software maintenance contract if the buyer does not have a right, as part of the contract, to receive at no additional cost software products that are separately priced and marketed by the vendor.
3. (c) The sales and use tax does not apply to the use of a taxable service obtained by using a prepaid telephone calling arrangement.

4. (d)

   1. (1)

      1. (i) In this subsection the following words have the meanings indicated.
      2. (ii) “Cloud computing” means a service that enables on-demand, self-service network access to a shared pool of configurable computer resources, including data storage, analytics, commerce, streaming, e-mail, document sharing, and document editing.
      3. (iii) “Qualified cybersecurity business” means an entity organized for profit that is engaged primarily in the development of innovative proprietary cybersecurity technology or the provision of cybersecurity services.
   2. (2) The sales and use tax imposed on a taxable service described under § 11-101(m)(14) or (15) of this title does not apply to a sale of cloud computing to a qualified cybersecurity business.

Added as Tax-General § 11-218 by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Renumbered as Tax-General § 11-219 by Acts 1988, c. 337, § 1. Amended by Acts 1992, 1st Sp. Sess., c. 1, § 2; Acts 1995, c. 129, § 1, eff. July 1, 1995; Acts 1999, c. 688, § 1, eff. Jan. 1, 2000; Acts 2007, 1st Sp. Sess., c. 3, § 3, eff. July 1, 2008; Acts 2008, c. 10, § 3, eff. July 1, 2008; Acts 2021, c. 669, § 1, eff. May 30, 2021; Acts 2025, c. 604, § 4, eff. July 1, 2025.

Formerly Art. 81, §§ 326, 375.