6                                  Laws of Maryland                          [Ch. 3

of other tangible personal property, to be produced for sale, by manu-
facturing, assembling, processing or refining; and

Whereas, it is and always has been the intent of the General As-
sembly of Maryland that the definition of "Use" in the Maryland Use
Tax should exclude only such property or service which is held solely
for resale in the regular course of business or which is to be incorpo-
rated as a material or part of other tangible personal property to be
produced for sale by manufacturing, assembling, processing or re-
fining; and

Whereas, the uniform administrative interpretation and enforce-
ment by the Comptroller of the Treasury since the inception of the
Retail Sales Tax Act and the Maryland Use Tax has been in con-
formity with the provisions of this amendment ACT, therefore:

Section 1. Be it enacted by the General Assembly of Maryland,
That effective as of July 1, 1947, Section 320 (f) (6) be and is hereby
added to Article 81 of the Annotated Code of Maryland (1951 Edi-
tion and 1956 Supplement) title "Revenue and Taxes" sub-title "Re-
tail Sales Tax Act" to follow immediately after Section 320 (f) (5)
AND to read as follows:

320 (f) (6) Sales of tangible personal property and/or services to
any person who will use the same as facilities, tools, tooling, machin-
ery or equipment (including, but not limited to dies, molds and pat-
terns) even though such person intends to transfer and/or does trans-
fer title to such property or service either before or after such person
uses the facilities, tools, tooling, machinery or equipment.

When the user of facilities, tools, tooling, machinery or equipment
transfers title immediately to the person for whom he manufactures
goods or performs work, such transfer shall not give rise to a second

tax unless and until physical possession is transferred to the person

for whom the goods are manufactured or the work is done.

IF THE USER OF FACILITIES, TOOLS, TOOLING, MACHIN-
ERY OR EQUIPMENT (INCLUDING, BUT NOT LIMITED TO,
DIES, MOLDS AND PATTERNS) IS UNDER CONTRACTUAL
OBLIGATION, BY THE TERMS OF A WRITTEN CONTRACT,
AT THE TIME HE PURCHASES THEM THE FACILITIES,
TOOLS, TOOLING, MACHINERY OR EQUIPMENT (INCLUD-
ING, BUT NOT LIMITED TO, DIES, MOLDS AND PATTERNS)
TO TRANSFER TITLE TO THE SAME, AT A PRICE EQUAL
TO OR GREATER THAN HIS PURCHASE PRICE, TO THE PER-
SON FOR WHOM HE MANUFACTURES GOODS OR PERFORMS
WORK, SUCH TRANSFER SHALL NOT GIVE RISE TO A
SECOND TAX.

Sec. 2. And be it further enacted, that effective July 1, 1947,
Section 368 (d) of Article 81 of the Annotated Code of Maryland
(1951 Edition), title ''Revenue and Taxes" sub-title "Maryland Use
Tax" be and the same is hereby repealed and reenacted with amend-
ments to read as follows:

368 (d) "Use" means the exercise by any person within this State
of any right or power over tangible personal property purchased
either within or without this State [by a purchaser from a vendor]
and includes but is not limited to the receipt, storage, keeping or