Section 11-209 - Casual and isolated sale; distribution or transfer of tangible personal property(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, a digital code, a digital product, 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, a digital code, or a digital product 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, a digital code, or a digital product: (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, digital code, or digital product 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.Amended by 2021 Md. Laws, Ch. 669,Sec. 1, eff. 5/30/2021.