- A. When it is not clear whether a raw material has undergone a substantial transformation, the Department will consider secondary factors in determining whether manufacturing has occurred.
B. Secondary factors include:
- (1) The scale and character of the operation;
- (2) The number of employees; and
- (3) Whether the nature of the operation is consistent with the common understanding of the term “manufacturing”.
Authority: Tax-Property Article, §§1-101(r), 2-201, 2-202, 7-108, 7-109, and 7-225, Annotated Code of Maryland
Effective date: April 19, 1999 (26:8 Md. R. 619)