Maryland Tax - General Section 9-315

      (a)      A licensed dealer or licensed special fuel seller shall deduct 0.5% of the 1st 10 cents of the motor fuel tax on each gallon of motor fuel, as a discount:

            (1)      instead of an allowance for evaporation, shrinkage, and handling; and

            (2)      to reimburse the licensed dealer or licensed special fuel seller for expenses incurred for the State in:

                  (i)      keeping records;

                  (ii)      collecting and paying the tax; and

                  (iii)      preparing reports.

      (b)      (1)      This subsection does not apply to:

                  (i)      any aviation gasoline; or

                  (ii)      any other motor fuel on which the motor fuel tax has not been paid.

            (2)      From the discount under subsection (a) of this section:

                  (i)      a licensed dealer who sells gasoline to a retail service station dealer shall deduct on the bill 1/2 of the discount;

                  (ii)      a licensed dealer who sells gasoline to a licensed distributor or licensed special fuel seller shall deduct on the bill 2/3 of the discount;

                  (iii)      a licensed distributor who sells motor fuel to a retail service station dealer shall deduct on the bill 1/3 of the discount;

                  (iv)      a licensed special fuel seller who sells special fuel to a retail service station dealer shall deduct on the bill 1/2 of the discount;

                  (v)      a licensed special fuel seller who sells special fuel to a licensed distributor shall deduct on the bill 2/3 of the discount; and

                  (vi)      a licensed special fuel seller who sells gasoline to a licensed distributor shall deduct on the bill 1/3 of the discount.