Maryland Tax - General Section 11-209

      (a)      The sales and use tax does not apply to a casual and isolated sale by a person who regularly does not sell tangible personal property or a taxable service if:

            (1)      the sale price is less than $1,000; and

            (2)      the sale is not made through an auctioneer or a dealer.

      (b)      The sales and use tax does not apply to a distribution of tangible personal property by:

            (1)      a corporation or joint-stock company to its stockholders as a liquidating distribution;

            (2)      a partnership to a partner; or

            (3)      a limited liability company to a member.

      (c)      (1)      The sales and use tax does not apply to a transfer of tangible personal property:

                  (i)      under a reorganization within the meaning of § 368(a) of the Internal Revenue Code;

                  (ii)      on organization of a corporation or joint-stock company, to the corporation or company principally in consideration for the issuance of its stock;

                  (iii)      to a partnership only as a contribution to its capital or in consideration for a partnership interest in the partnership; or

                  (iv)      to a limited liability company only as a capital contribution or in consideration for an interest in the limited liability company.

            (2)      For a transfer that would qualify as a casual and isolated sale under subsection (a) of this section if the sale price limitation were disregarded, the amount of liability transferred to or assumed by a corporation, joint-stock company, partnership, or limited liability company shall be excluded from the consideration transferred by the corporation, joint-stock company, partnership, or limited liability company in exchange for the tangible personal property to determine whether the transfer is made:

                  (i)      principally in consideration for the issuance of stock of a corporation or joint-stock company;

                  (ii)      only as a contribution to the capital of a partnership or in consideration for a partnership interest; or

                  (iii)      only as a capital contribution to a limited liability company or in consideration for an interest in a limited liability company.