Target redevelopment area tax exemption

The sales and use tax does not apply to a sale of construction material or warehousing equipment if: (1) the material or equipment is purchased by a person solely for use in a target redevelopment area; and (2) the buyer provides the vendor with evidence of eligibility for the exemption issued by the Maryland Comptroller. For at least three years after the date of the sale, the buyer must maintain a record of the amount of sales and use tax that was not paid as a result of the exemption. On or before October 1, 2027, and each subsequent October 1, each buyer that receives a sales and use tax certificate must report to the comptroller the amount of sales and use tax that was not paid as a result of the exemption during the immediately preceding fiscal year.

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