Md. Code Ann., Tax-Gen. § 11-223 — § 11-223

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.