Property for use in another state

Checkout our iOS App for a better way to browser and research.

    (a)    The sales and use tax does not apply to:

        (1)    a sale for use of tangible personal property that:

            (i)    is bought outside this State;

            (ii)    is intended solely for use in another state; and

            (iii)    is stored in this State pending shipment to another state;

        (2)    a sale of tangible personal property to a person obligated under a contract to incorporate that property into real property located in another state where the purchase or use of that property would not be subject to a sales tax, use tax, or similar tax; or

        (3)    except for that portion of the purchase price allocable to intended viewing in this State, a sale of a series of images stored on video tape or in other optical or digital forms or electronic signals generated from these images to a cable or other nonbroadcast television network, if the images are intended for viewing by television viewers located outside the State.

    (b)    The sales and use tax shall be paid:

        (1)    on a sale under subsection (a)(1) of this section, when the tangible personal property is imported or stored in the State; and

        (2)    on a sale under subsection (a)(2) of this section, when the sale is made.

    (c)    A person who pays the sales and use tax under subsection (b) of this section may obtain the exemption by:

        (1)    filing a claim for refund with the Comptroller when the property is removed from the State; and

        (2)    providing the Comptroller with the evidence that the Comptroller requires by regulation, including:

            (i)    evidence of use or removal of the property from the State; and

            (ii)    satisfactory proof of entitlement to exemption in another state.


Download our app to see the most-to-date content.