Machinery or equipment used both in a production activity and administrative, managerial, sales or any other non-operational activity is exempt from Maryland sales tax if the equipment is used at least 50 percent of the time in a production activity. The exemption applies to the purchase or lease of qualified production activity equipment.
Manufacturing equipment for bakery goods
There is a specific exemption for the sale of equipment to be used by a retail food vendor to manufacture or process bread or bakery goods for resale. To qualify for the exemption, the vendor must operate a substantial grocery or market business (as defined in Section 11-206(a) of the Tax-General Article) at the same location where the food is sold. The taxable price of each piece of exempt equipment must be at least $2,000.