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Exempt Equipment

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.

Links for Production Exemptions
Business Tax Types
Sales and Use Tax
Filing Information
Tax Exemptions
Production Exemptions
  Production Activities
  Exempt Equipment
  Exempt Production Activity Items
  Utilities and Fuel Exemptions
  Special Provisions for Printers
  Claiming Production Exemptions
  Claiming a Refund for Overpaid Taxes
  Purchases for Research and Development
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