A. Consumption in Production Activities.
(1) The sale of gas, electricity, steam, oil, or coal, consumed
directly and predominantly in a production activity is not
subject to the tax. Production activities do not include
processing food or a beverage by a retail food vendor
or operating administrative or commercial facilities, such
as oces, sales and display rooms, retail outlets and
storage facilities, including refrigerated storage facilities.
(2) If electricity, gas, or steam is sold through a single meter
for both exempt and taxable uses, the purpose which
consumes the majority of the electricity, gas, or steam is
the basis for determining the taxability of the sale. The
buyer shall determine the majority usage, considering
the relative connected load for each purpose and the
relative time of operation of each over a period of one
year, unless the circumstances of a particular case
require a dierent period. Similarly, the taxability of
purchases of oil or coal is determined by the majority
use where it is impracticable to measure separately the
amount purchased for each purpose.
(3) If the sale of electricity or natural gas is exempt from
tax, the sale of the transmission, distribution, or delivery
of that electricity or natural gas is also exempt from tax.
(4) In order to obtain this exclusion, the buyer of gas,
electricity, steam, oil or coal shall present to the vendor
of the commodity and the vendor of the transmission,
distribution, or delivery service a certication, upon a
form available from the comptroller, setting forth the
basis for the claimed exemption. Upon presentation
of the completed and signed form, the vendor may
not collect the tax until notied by the comptroller to
resume collection or until the certication is revoked by
the buyer. The buyer shall revoke the certication when
no longer entitled to exclusion under the terms of this
B. Exempt Buyers.
(1) A person operating a non-prot religious, charitable,
or educational organization possessing an exemption
certicate issued by the comptroller under Regulation
.22, and other persons possessing an exemption
certicate issued by the comptroller, may claim
exemption for the tax on gas, electricity, steam, oil, coal,
or the transmission, distribution, or delivery of electricity
or natural gas by providing a photocopy of this certicate
to the vendor.
(2) A member of a foreign diplomatic corps may purchase
gas, electricity, steam, oil, coal or the transmission,
distribution, or delivery of electricity or natural gas
free of tax by presenting to the vendor the evidence of
exemption issued by the United States Department of
Special Instructions for Restaurants and Other Food
Purchases of utilities and fuel by retail food vendors for use in
processing food for sale are not eligible for exemption.
Note: Do not mail this form to the Compliance Division.
The completed form is to be provided to the supplier and
not to the Compliance Division.
For more information email ques
Maryland Relay Service (MRS) 711.
Direct inquiries to:
Comptroller of Maryland
301 West Preston Street, Room 303
Baltimore, Maryland 21201-2383
Regulation .10 Natural and Articial Gas, Electricity, Steam, Oil and Coal
Exemption Certication for Utilities or Fuel
Used in Production Activities