Maryland Code § TG-11-223

Section TG-11-223
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The sales and use tax does not apply to a sale of:
(1) a bus to a person who uses the bus only:
(i) in the operation of the transportation system of a political
subdivision of the State; and
(ii) for public transportation on regular schedules and between
fixed termini, as defined in Title 11 of the Transportation Article; or
(2) a transportation service.

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