MARVIN MANDEL, Governor

1033

(3) Notwithstanding the provisions of this
subsection, no tax is paid on issuance of any certificate
of title if the owner of the vessel for which a
certificate of title is sought was the owner of the
vessel prior to June 1, 1965, or if he paid Maryland
sales tax on the vessel as required by law at the time of
acquisition. The Department may require the applicant
for titling to submit satisfactory proof that he owned
the vessel prior to June 1, 1965.

([(4) IF A DEALER COLLECTS THE TAX FOR THE
DEPARTMENT, THE DEALER MAY CREDIT AGAINST THE AMOUNT OF
TAX COLLECTED AN AMOUNT EQUAL TO 2 PERCENT OF THE GROSS
TAX COLLECTED TO COVER HIS EXPENSE IN THE COLLECTION AND
REMITTANCE OF THE TAX.

(5)    IF THE DEPARTMENT FINDS THAT A DEALER
DOES NOT HAVE ADEQUATE RECORDS OR HAS INCORRECT RECORDS
OF SALES OR RESALES OF NEW OR USED VESSELS AND THAT THE
AMOUNT OF TITLE TAX COLLECTED FOR THE DEPARTMENT ON THESE
SALES CANNOT BE ACCURATELY DETERMINED, THE DEPARTMENT
SHALL DETERMINE THE TAXABLE SALES OF THE DEALER FOR ANY
PERIOD INVOLVED AND COMPUTE THE TAX FROM THE BEST
INFORMATION AVAILABLE. THE DETERMINATION OR COMPUTATION
SHALL BE PRIMA FACIE CORRECT.

(6)    IF THE DEPARTMENT DETERMINES THE SALES
OF NEW OR USED VESSELS AND COMPOTES THE TAX DUE, IT SHALL
LEVY AGAINST THE DEALER A DEFICIENCY ASSESSMENT IN THE
AMOUNTS SPECIFIED IN ARTICLE 81, § 345(1) AND (2). THE
DEPARTMENT SHALL NOTIFY THE DEALER OF THE TAX DUE AND OF
THE AMOUNT OF THE DEFICIENCY ASSESSMENT. IF THE DEALER
FAILS TO PAY THE TAX AND ASSESSMENT WITHIN TEN DAYS AFTER
RECEIVING NOTICE FROM THE DEPARTMENT, THE DEPARTMENT
SHALL LEVY, IN ADDITION TO THE TAX AND ASSESSMENT, A
PENALTY IN THE AMOUNT OF 25 PERCENT OF THE TAX DUE.

(7)    IF ANY DEALER FAILS TO KEEP ANY RECORDS
OF SALES OF VESSELS, THE DEPARTMENT MAY COMPUTE THE TAX
DUE AS PROVIDED IN ARTICLE 81, § 357(B).

(8)    THE DEPARTMENT MAY ADOPT REASONABLE
RULES AND REGULATIONS SIMILAR TO THOSE IN ARTICLE 81, §
346 TO IMPLEMENT THIS SECTION.

(c) A person is not required to pay the tax
provided for in subsection (b) OF THIS SECTION to obtain
a certificate of title resulting from[;]:

(1)    A transfer between members of the
immediate family as determined by Department rules and
regulations;

(2)    A transfer between licensed dealers in
vessels for resale;

[(3) Sale or transfer of a vessel or boat not
required to be titled under this subtitle;]