Maryland HOUSE BILL 1125
File Code: Taxes - Miscellaneous
Prior Year Introduction As: SB 258/94 - B&T
http://mlis.state.md.us/2001rs/billfile/HB1125.htm
Sponsored By:
Delegates Oaks, Marriott, V. Jones, Kirk, McIntosh, and Paige
Entitled:
Ammunition Tax
Synopsis:
Imposing a tax on the sale of ammunition in the State; establishing the rate of the ammunition tax at 50 cents per round for ammunition other than antipersonnel
ammunition and $5 per round for antipersonnel ammunition; including the ammunition tax under the administration of the sales tax; exempting sales of ammunition
to police forces and other governmental agencies; requiring ammunition dealers to file specified returns; etc.
HOUSE BILL 1125
1 Preamble
2 WHEREAS, There has been in recent years an alarming increase in the
3 number of murders and other violent crimes perpetrated in Maryland; and
4 WHEREAS, A high percentage of these murders and other violent crimes
5 involve the use of firearms; and
6 WHEREAS, In addition to the immeasurable social costs resulting therefrom,
7 violent crimes committed with firearms continue to place an enormous strain on State
8 and local public finances due to increased costs of emergency medical services, public
9 safety, and correctional services; now, therefore,
10 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
11 MARYLAND, That the Laws of Maryland read as follows:
12 Article - Tax - General
13 1-101.
14 (s) (1) "Sales and use tax" means the tax imposed under Title 11 of this
15 article.
16 (2) "Sales and use tax" includes the tax imposed on the use of certain
17 electricity under § 11-1A-01 of this article.
18 (3) "SALES AND USE TAX" INCLUDES THE AMMUNITION TAX IMPOSED
19 UNDER TITLE 11, SUBTITLE 1B OF THIS ARTICLE.
20 11-101.
21 (a) In this title the following words have the meanings indicated.
22 (f) (1) "Retail sale" means the sale of:
23 (i) tangible personal property; or
24 (ii) a taxable service.
25 (2) "Retail sale" includes:
26 (i) a sale of tangible personal property for use or resale in the form
27 of real estate by a builder, contractor, or landowner; and
28 (ii) except as provided in paragraph (3)(i) of this subsection, use of
29 tangible personal property as facilities, tools, tooling, machinery, or equipment,
30 including dies, molds, and patterns, even if the buyer intends to transfer title to the
31 property before or after that use.
32 (3) "Retail sale" does not include:
3 HOUSE BILL 1125
1 (i) a transfer of title to tangible personal property after its use as
2 facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns,
3 if:
4 1. at the time of purchase, the buyer is obligated, under the
5 terms of a written contract, to make the transfer; and
6 2. the transfer is made for the same or greater consideration
7 to the person for whom the buyer manufactures goods or performs work;
8 (ii) a sale of tangible personal property if the buyer intends to:
9 1. resell the tangible personal property in the form that the
10 buyer receives or is to receive the property;
11 2. use or incorporate the tangible personal property in a
12 production activity as a material or part of other tangible personal property to be
13 produced for sale; or
14 3. transfer the tangible personal property as a part of a
15 taxable service transaction; or
16 (iii) a sale of a taxable service if the buyer intends to resell the
17 taxable service in the form that the buyer receives or is to receive the service.
18 (h) "Sale for use" means a sale in which tangible personal property or a
19 taxable service that is consumed, possessed, stored, or used in the State is acquired.
20 (l) (1) "Use" means an exercise of a right or power to use, consume, possess,
21 or store that is acquired by a sale for use of:
22 (i) tangible personal property; or
23 (ii) a taxable service.
24 (2) "Use" includes an exercise of a right or power to use, consume,
25 possess, or store that is acquired by a sale for use of tangible personal property:
26 (i) for use or resale in the form of real estate by a builder,
27 contractor, or landowner; or
28 (ii) except as provided in paragraph (3)(i) of this subsection, as
29 facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns,
30 even if the buyer intends to transfer title to the property before or after that use.
31 (3) "Use" does not include:
32 (i) a transfer of title to tangible personal property after its use as
33 facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns,
34 if:
4 HOUSE BILL 1125
1 1. at the time of purchase, the buyer is obligated, under the
2 terms of a written contract, to make the transfer; and
3 2. the transfer is made for the same or greater consideration
4 to the person for whom the buyer manufactures goods or performs work;
5 (ii) an exercise of a right or power over tangible personal property
6 acquired by a sale for use if the buyer intends to:
7 1. resell the tangible personal property in the form that the
8 buyer receives or is to receive the property;
9 2. use or incorporate the tangible personal property in a
10 production activity as a material or part of other tangible personal property to be
11 produced for sale; or
12 3. transfer the tangible personal property as part of a taxable
13 service transaction; or
14 (iii) an exercise of a right or power over a taxable service acquired
15 by a sale for use if the buyer intends to resell the taxable service in the form that the
16 buyer receives or is to receive the service.
17 SUBTITLE 1B. AMMUNITION TAX.
18 11-1B-01.
19 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
20 INDICATED.
21 (B) "AMMUNITION DEALER" MEANS ANY PERSON ENGAGED IN THE BUSINESS
22 OF SELLING AMMUNITION AT WHOLESALE OR RETAIL.
23 (C) "AMMUNITION TAX" MEANS THE TAX IMPOSED UNDER THIS SUBTITLE.
24 (D) "ANTIPERSONNEL AMMUNITION" MEANS:
25 (1) ANY JACKETED, HOLLOW POINT PROJECTILE THAT MAY BE USED IN
26 A HANDGUN, THE JACKET OF WHICH IS DESIGNED TO PRODUCE, ON IMPACT, EVENLY
27 SPACED SHARP OR BARB-LIKE PROJECTIONS THAT EXTEND BEYOND THE DIAMETER
28 OF THE UNFIRED PROJECTILE, INCLUDING AMMUNITION OR BULLETS KNOWN AS
29 BLACK TALON OR STARFIRE; OR
30 (2) ANY CARTRIDGE WITH A PROJECTILE MEASURING 0.500 INCH OR
31 GREATER IN DIAMETER THAT MAY BE USED IN A HANDGUN.
32 11-1B-02.
33 IN ADDITION TO THE TAX IMPOSED UNDER § 11-102 OF THIS TITLE, A TAX IS
34 IMPOSED ON:
5 HOUSE BILL 1125
1 (1) A RETAIL SALE OF AMMUNITION IN THE STATE; AND
2 (2) A USE OF AMMUNITION IN THE STATE.
3 11-1B-03.
4 (A) A REBUTTABLE PRESUMPTION EXISTS THAT ANY SALE OF AMMUNITION
5 IN THE STATE IS SUBJECT TO THE AMMUNITION TAX IMPOSED UNDER THIS
6 SUBTITLE.
7 (B) THE PERSON REQUIRED TO PAY THE AMMUNITION TAX HAS THE BURDEN
8 OF PROVING THAT A SALE OF AMMUNITION IN THE STATE IS NOT SUBJECT TO THE
9 AMMUNITION TAX.
10 (C) (1) THE EXEMPTIONS UNDER SUBTITLE 2 OF THIS TITLE DO NOT APPLY
11 TO THE AMMUNITION TAX.
12 (2) THE AMMUNITION TAX DOES NOT APPLY TO A SALE OF AMMUNITION
13 TO A POLICE FORCE OR OTHER AGENCY OF THE UNITED STATES, ANY STATE, OR A
14 POLITICAL SUBDIVISION OF ANY STATE.
15 11-1B-04.
16 THE AMMUNITION TAX RATE IS:
17 (1) 50 CENTS PER ROUND OF AMMUNITION FOR AMMUNITION OTHER
18 THAN ANTIPERSONNEL AMMUNITION; AND
19 (2) $5 PER ROUND OF AMMUNITION FOR ANTIPERSONNEL AMMUNITION.
20 11-1B-05.
21 (A) THE PROVISIONS OF § 11-105 OF THIS TITLE DO NOT APPLY TO THE
22 AMMUNITION TAX.
23 (B) A PERSON WHO TIMELY FILES AN AMMUNITION TAX RETURN IS ALLOWED,
24 FOR THE EXPENSE OF COLLECTING AND PAYING THE TAX, A CREDIT EQUAL TO 0.5%
25 OF THE GROSS AMOUNT OF AMMUNITION TAX THAT THE PERSON IS TO PAY TO THE
26 COMPTROLLER.
27 11-501.
28 (C) (1) A BUYER WHO FAILS TO PAY TO THE VENDOR THE AMMUNITION TAX
29 ON A PURCHASE OR USE SUBJECT TO THE TAX AS REQUIRED UNDER § 11-403 OF THIS
30 TITLE SHALL COMPLETE AND FILE WITH THE COMPTROLLER AN AMMUNITION TAX
31 RETURN ON OR BEFORE THE 21ST DAY OF THE MONTH THAT FOLLOWS THE MONTH
32 IN WHICH THE BUYER MAKES THAT PURCHASE OR USE.
33 (2) A RETURN FILED BY A BUYER UNDER THIS SUBSECTION SHALL
34 STATE SEPARATELY, FOR ANTIPERSONNEL AMMUNITION AND FOR ALL OTHER
35 AMMUNITION, FOR THE PERIOD THAT THE RETURN COVERS:
6 HOUSE BILL 1125
1 (I) THE NUMBER OF ROUNDS OF THE AMMUNITION SUBJECT TO
2 THE AMMUNITION TAX; AND
3 (II) THE AMMUNITION TAX DUE.
4 11-502.
5 (D) (1) EACH AMMUNITION DEALER SHALL COMPLETE AND FILE WITH THE
6 COMPTROLLER AN AMMUNITION TAX RETURN ON OR BEFORE THE 21ST DAY OF THE
7 MONTH THAT FOLLOWS THE MONTH IN WHICH THE DEALER MAKES A RETAIL SALE
8 OR SALE FOR USE OF AMMUNITION.
9 (2) A RETURN FILED BY AN AMMUNITION DEALER UNDER THIS
10 SUBSECTION SHALL STATE SEPARATELY, FOR ANTIPERSONNEL AMMUNITION AND
11 FOR ALL OTHER AMMUNITION, FOR THE PERIOD THAT THE RETURN COVERS:
12 (I) THE NUMBER OF ROUNDS OF THE AMMUNITION SOLD BY THE
13 DEALER; AND
14 (II) THE AMMUNITION TAX DUE.
15 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take
16 effect July 1, 2001.
File Code: Taxes - Miscellaneous
Prior Year Introduction As: SB 258/94 - B&T
http://mlis.state.md.us/2001rs/billfile/HB1125.htm
Sponsored By:
Delegates Oaks, Marriott, V. Jones, Kirk, McIntosh, and Paige
Entitled:
Ammunition Tax
Synopsis:
Imposing a tax on the sale of ammunition in the State; establishing the rate of the ammunition tax at 50 cents per round for ammunition other than antipersonnel
ammunition and $5 per round for antipersonnel ammunition; including the ammunition tax under the administration of the sales tax; exempting sales of ammunition
to police forces and other governmental agencies; requiring ammunition dealers to file specified returns; etc.
HOUSE BILL 1125
1 Preamble
2 WHEREAS, There has been in recent years an alarming increase in the
3 number of murders and other violent crimes perpetrated in Maryland; and
4 WHEREAS, A high percentage of these murders and other violent crimes
5 involve the use of firearms; and
6 WHEREAS, In addition to the immeasurable social costs resulting therefrom,
7 violent crimes committed with firearms continue to place an enormous strain on State
8 and local public finances due to increased costs of emergency medical services, public
9 safety, and correctional services; now, therefore,
10 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
11 MARYLAND, That the Laws of Maryland read as follows:
12 Article - Tax - General
13 1-101.
14 (s) (1) "Sales and use tax" means the tax imposed under Title 11 of this
15 article.
16 (2) "Sales and use tax" includes the tax imposed on the use of certain
17 electricity under § 11-1A-01 of this article.
18 (3) "SALES AND USE TAX" INCLUDES THE AMMUNITION TAX IMPOSED
19 UNDER TITLE 11, SUBTITLE 1B OF THIS ARTICLE.
20 11-101.
21 (a) In this title the following words have the meanings indicated.
22 (f) (1) "Retail sale" means the sale of:
23 (i) tangible personal property; or
24 (ii) a taxable service.
25 (2) "Retail sale" includes:
26 (i) a sale of tangible personal property for use or resale in the form
27 of real estate by a builder, contractor, or landowner; and
28 (ii) except as provided in paragraph (3)(i) of this subsection, use of
29 tangible personal property as facilities, tools, tooling, machinery, or equipment,
30 including dies, molds, and patterns, even if the buyer intends to transfer title to the
31 property before or after that use.
32 (3) "Retail sale" does not include:
3 HOUSE BILL 1125
1 (i) a transfer of title to tangible personal property after its use as
2 facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns,
3 if:
4 1. at the time of purchase, the buyer is obligated, under the
5 terms of a written contract, to make the transfer; and
6 2. the transfer is made for the same or greater consideration
7 to the person for whom the buyer manufactures goods or performs work;
8 (ii) a sale of tangible personal property if the buyer intends to:
9 1. resell the tangible personal property in the form that the
10 buyer receives or is to receive the property;
11 2. use or incorporate the tangible personal property in a
12 production activity as a material or part of other tangible personal property to be
13 produced for sale; or
14 3. transfer the tangible personal property as a part of a
15 taxable service transaction; or
16 (iii) a sale of a taxable service if the buyer intends to resell the
17 taxable service in the form that the buyer receives or is to receive the service.
18 (h) "Sale for use" means a sale in which tangible personal property or a
19 taxable service that is consumed, possessed, stored, or used in the State is acquired.
20 (l) (1) "Use" means an exercise of a right or power to use, consume, possess,
21 or store that is acquired by a sale for use of:
22 (i) tangible personal property; or
23 (ii) a taxable service.
24 (2) "Use" includes an exercise of a right or power to use, consume,
25 possess, or store that is acquired by a sale for use of tangible personal property:
26 (i) for use or resale in the form of real estate by a builder,
27 contractor, or landowner; or
28 (ii) except as provided in paragraph (3)(i) of this subsection, as
29 facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns,
30 even if the buyer intends to transfer title to the property before or after that use.
31 (3) "Use" does not include:
32 (i) a transfer of title to tangible personal property after its use as
33 facilities, tools, tooling, machinery, or equipment, including dies, molds, and patterns,
34 if:
4 HOUSE BILL 1125
1 1. at the time of purchase, the buyer is obligated, under the
2 terms of a written contract, to make the transfer; and
3 2. the transfer is made for the same or greater consideration
4 to the person for whom the buyer manufactures goods or performs work;
5 (ii) an exercise of a right or power over tangible personal property
6 acquired by a sale for use if the buyer intends to:
7 1. resell the tangible personal property in the form that the
8 buyer receives or is to receive the property;
9 2. use or incorporate the tangible personal property in a
10 production activity as a material or part of other tangible personal property to be
11 produced for sale; or
12 3. transfer the tangible personal property as part of a taxable
13 service transaction; or
14 (iii) an exercise of a right or power over a taxable service acquired
15 by a sale for use if the buyer intends to resell the taxable service in the form that the
16 buyer receives or is to receive the service.
17 SUBTITLE 1B. AMMUNITION TAX.
18 11-1B-01.
19 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
20 INDICATED.
21 (B) "AMMUNITION DEALER" MEANS ANY PERSON ENGAGED IN THE BUSINESS
22 OF SELLING AMMUNITION AT WHOLESALE OR RETAIL.
23 (C) "AMMUNITION TAX" MEANS THE TAX IMPOSED UNDER THIS SUBTITLE.
24 (D) "ANTIPERSONNEL AMMUNITION" MEANS:
25 (1) ANY JACKETED, HOLLOW POINT PROJECTILE THAT MAY BE USED IN
26 A HANDGUN, THE JACKET OF WHICH IS DESIGNED TO PRODUCE, ON IMPACT, EVENLY
27 SPACED SHARP OR BARB-LIKE PROJECTIONS THAT EXTEND BEYOND THE DIAMETER
28 OF THE UNFIRED PROJECTILE, INCLUDING AMMUNITION OR BULLETS KNOWN AS
29 BLACK TALON OR STARFIRE; OR
30 (2) ANY CARTRIDGE WITH A PROJECTILE MEASURING 0.500 INCH OR
31 GREATER IN DIAMETER THAT MAY BE USED IN A HANDGUN.
32 11-1B-02.
33 IN ADDITION TO THE TAX IMPOSED UNDER § 11-102 OF THIS TITLE, A TAX IS
34 IMPOSED ON:
5 HOUSE BILL 1125
1 (1) A RETAIL SALE OF AMMUNITION IN THE STATE; AND
2 (2) A USE OF AMMUNITION IN THE STATE.
3 11-1B-03.
4 (A) A REBUTTABLE PRESUMPTION EXISTS THAT ANY SALE OF AMMUNITION
5 IN THE STATE IS SUBJECT TO THE AMMUNITION TAX IMPOSED UNDER THIS
6 SUBTITLE.
7 (B) THE PERSON REQUIRED TO PAY THE AMMUNITION TAX HAS THE BURDEN
8 OF PROVING THAT A SALE OF AMMUNITION IN THE STATE IS NOT SUBJECT TO THE
9 AMMUNITION TAX.
10 (C) (1) THE EXEMPTIONS UNDER SUBTITLE 2 OF THIS TITLE DO NOT APPLY
11 TO THE AMMUNITION TAX.
12 (2) THE AMMUNITION TAX DOES NOT APPLY TO A SALE OF AMMUNITION
13 TO A POLICE FORCE OR OTHER AGENCY OF THE UNITED STATES, ANY STATE, OR A
14 POLITICAL SUBDIVISION OF ANY STATE.
15 11-1B-04.
16 THE AMMUNITION TAX RATE IS:
17 (1) 50 CENTS PER ROUND OF AMMUNITION FOR AMMUNITION OTHER
18 THAN ANTIPERSONNEL AMMUNITION; AND
19 (2) $5 PER ROUND OF AMMUNITION FOR ANTIPERSONNEL AMMUNITION.
20 11-1B-05.
21 (A) THE PROVISIONS OF § 11-105 OF THIS TITLE DO NOT APPLY TO THE
22 AMMUNITION TAX.
23 (B) A PERSON WHO TIMELY FILES AN AMMUNITION TAX RETURN IS ALLOWED,
24 FOR THE EXPENSE OF COLLECTING AND PAYING THE TAX, A CREDIT EQUAL TO 0.5%
25 OF THE GROSS AMOUNT OF AMMUNITION TAX THAT THE PERSON IS TO PAY TO THE
26 COMPTROLLER.
27 11-501.
28 (C) (1) A BUYER WHO FAILS TO PAY TO THE VENDOR THE AMMUNITION TAX
29 ON A PURCHASE OR USE SUBJECT TO THE TAX AS REQUIRED UNDER § 11-403 OF THIS
30 TITLE SHALL COMPLETE AND FILE WITH THE COMPTROLLER AN AMMUNITION TAX
31 RETURN ON OR BEFORE THE 21ST DAY OF THE MONTH THAT FOLLOWS THE MONTH
32 IN WHICH THE BUYER MAKES THAT PURCHASE OR USE.
33 (2) A RETURN FILED BY A BUYER UNDER THIS SUBSECTION SHALL
34 STATE SEPARATELY, FOR ANTIPERSONNEL AMMUNITION AND FOR ALL OTHER
35 AMMUNITION, FOR THE PERIOD THAT THE RETURN COVERS:
6 HOUSE BILL 1125
1 (I) THE NUMBER OF ROUNDS OF THE AMMUNITION SUBJECT TO
2 THE AMMUNITION TAX; AND
3 (II) THE AMMUNITION TAX DUE.
4 11-502.
5 (D) (1) EACH AMMUNITION DEALER SHALL COMPLETE AND FILE WITH THE
6 COMPTROLLER AN AMMUNITION TAX RETURN ON OR BEFORE THE 21ST DAY OF THE
7 MONTH THAT FOLLOWS THE MONTH IN WHICH THE DEALER MAKES A RETAIL SALE
8 OR SALE FOR USE OF AMMUNITION.
9 (2) A RETURN FILED BY AN AMMUNITION DEALER UNDER THIS
10 SUBSECTION SHALL STATE SEPARATELY, FOR ANTIPERSONNEL AMMUNITION AND
11 FOR ALL OTHER AMMUNITION, FOR THE PERIOD THAT THE RETURN COVERS:
12 (I) THE NUMBER OF ROUNDS OF THE AMMUNITION SOLD BY THE
13 DEALER; AND
14 (II) THE AMMUNITION TAX DUE.
15 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take
16 effect July 1, 2001.
