J. MILLARD TAWES, Governor                      995

SUANCE OF EVERY ORIGINAL CERTIFICATE OF TITLE RE-
QUIRED UNDER THIS ARTICLE FOR A VESSEL AND ON
THE ISSUANCE OF EVERY SUBSEQUENT CERTIFICATE OF
TITLE FOR THE SALE, RESALE OR TRANSFER OF THE
VESSEL.

1.    THE DEPARTMENT SHALL BE PAID A TAX BY THE
APPLICANT FOR A CERTIFICATE OF TITLE AT THE RATE
OF THREE PERCENTUM (3%) OF THE GROSS SALES PRICE,
OR IF NO SALE IMMEDIATELY PRECEDES THE APPLICA-
TION FOR TITLE, THE FAIR MARKET VALUE OF THE VES-
SEL FOR WHICH A CERTIFICATE OF TITLE IS APPLIED FOR
AND ISSUED. THE DEPARTMENT MAY REQUIRE THE SUB-
MISSION TO IT OF PROOF SATISFACTORY TO IT IN ORDER
TO ESTABLISH THE TAX DUE.

2.    THE TAX IMPOSED BY THIS SECTION SHALL ACCOM-
PANY ALL APPLICATIONS FOR CERTIFICATES OF TITLE
ISSUED ON AND AFTER JULY 1, 1965, AND SHALL BE IN
LIEU OF THE COLLECTION OF ANY TAX ON THE SALE OF
THE VESSEL REQUIRED UNDER SECTIONS 325 OR 373 OF
ARTICLE 81 OF THIS CODE, AS AMENDED FROM TIME TO
TIME UNLESS OTHERWISE EXEMPT FROM THE TAX.

3.    NOTWITHSTANDING THE PROVISIONS OF THIS SUB-
SECTION, NO TAX SHALL BE PAID ON THE ISSUANCE OF
ANY CERTIFICATE OF TITLE WHERE THE OWNER OF THE
VESSEL FOR WHICH A CERTIFICATE OF TITLE IS APPLIED
FOR WAS THE OWNER OF THE VESSEL PRIOR TO JUNE 1,
1965. THE DEPARTMENT MAY REQUIRE THE APPLICANT
FOR TITLING TO SUBMIT PROOF SATISFACTORY TO IT TO
PROVE THE OWNERSHIP OF THE VESSEL BY THE APPLI-
CANT PRIOR TO JUNE 1, 1965.

(C)    NO TAX OR FEE AS SET FORTH IN SUBSECTION
(A) AND (B) OF THIS SECTION SHALL BE PAID FOR IS-
SUANCE OF A CERTIFICATE OF TITLE RESULTING FROM A
TRANSFER BETWEEN SPOUSES, BETWEEN LICENSED
DEALERS IN VESSELS FOR RESALE, ON THE SALE OR
TRANSFER OF A VESSEL OR BOAT NOT REQUIRED TO BE
TITLED UNDER THIS ARTICLE, VESSELS OWNED BY THE
STATE OF MARYLAND OR ANY OF ITS POLITICAL SUBDIVI-
SIONS, OR VESSELS OWNED BY ELEEMOSYNARY ORGANI-
ZATIONS.

(D)    NOTWITHSTANDING THE PROVISIONS OF SECTION
7 OF THIS ARTICLE, THE FUNDS FROM THE EXCISE TAX
LEVIED UNDER THIS SECTION SHALL BE DEPOSITED BY
THE DEPARTMENT WITH THE COMPTROLLER OF THE
TREASURY IN A SPECIAL FUND TO BE KNOWN AS THE
WATERWAYS IMPROVEMENT FUND AND SHALL BE EX-
PENDED ONLY FOR THE PURPOSES SPECIFIED.

4F.

WHENEVER THE DEPARTMENT SHALL DETERMINE
THAT THERE HAS BEEN AN OVERPAYMENT OF THE EX-
CISE TAX UPON TITLING A VESSEL, OR AN OVERPAYMENT
HAS RESULTED FROM WHATEVER CAUSE, THE DEPART-