3180

LAWS OF MARYLAND

Ch. 828

(D)  (1) IF A PERSON OBLIGATED TO PAY THE TAX FAILS TO PAY
THE TAX WHEN DUE, THERE SHALL BE ASSESSED AGAINST HIM, IN
ADDITION TO THE TAX DUE, A PENALTY OF 10 PERCENT, PLUS INTEREST
AT THE RATE OF 1.5 PERCENT PER MONTH OR FRACTION OF A MONTH FROM
THE TIME THE TAX WAS DUE UNTIL PAID. THIS PENALTY AND INTEREST
MAY BE WAIVED BY THE SECRETARY IF WITHIN 10 DAYS AFTER THE NOTICE
OF THE ASSESSMENT, THE TAXPAYER FILES AN APPEAL SHOWING CAUSE WHY
THE TAX IS NOT PAID WHEN DUE. ANY AMOUNTS RECEIVED FROM ANY
DEALER OR OWNER UNDER THIS SUBSECTION SHALL BE CREDITED FIRST TO
PENALTY AND INTEREST ACCRUED AND THEN TO TAX DUE.

(2) IF THE FAILURE TO PAY THE TAX IS DUE TO AN
ATTEMPT TO DEFRAUD, THEN THE PENALTY SHALL BE, IN LIEU OF THE
PENALTY MORE SPECIFICALLY PROVIDED FOR BY SUBSECTION (D) OF THIS
SECTION, 100 PERCENT OF THE TAX DUE, PLUS INTEREST AT THE RATE OF
1.5 PERCENT PER MONTH OR FRACTION OF A MONTH FROM THE TIME DUE
UNTIL PAID.

(E)  IF THE DEPARTMENT FINDS THAT ANY DEALER OR OTHER PERSON
LIABLE FOR THE TAX IMPOSED BY THIS SUBTITLE INTENDS TO DEPART
FROM THIS STATE, REMOVE HIS PROPERTY FROM THIS STATE, CONCEAL
HIMSELF OR HIS PROPERTY IN THIS STATE, OR DO ANY OTHER ACT
TENDING TO PREJUDICE OR RENDER WHOLLY OR PARTLY INEFFECTUAL
PROCEEDINGS TO COLLECT THE TAX, THE DEPARTMENT SHALL NOTIFY THE
DEALER OR OTHER PERSON OF ITS FINDINGS AND DEMAND AN IMMEDIATE
PAYMENT OF THE TAX, INTEREST AND PENALTY.

(1)  IF THE AMOUNT OF TAX, INTEREST, AND PENALTY
SPECIFIED IN THE NOTICE OF JEOPARDY ASSESSMENT IS NOT PAID WITHIN
10 DAYS OF THE SERVICE OF THE NOTICE, THE DEPARTMENT MAY BRING
ANY ACTION THAT IT CONSIDERS ADVISABLE FOR THE PROMPT COLLECTION
OF THE TAX.

(2)  IF, WITHIN 10 DAYS OF THE SERVICE OF THE NOTICE,
THE PERSON LIABLE FOR THE TAX FILES WITH THE DEPARTMENT
SATISFACTORY EVIDENCE THAT HE IS NOT IN DEFAULT IN PAYING THE TAX
OR THAT HE WILL DULY RETURN AND PAY THE TAX, THEN THE TAX IS NOT
PAYABLE BEFORE THE TIME OTHERWISE REQUIRED BY THIS PART.
HOWEVER, IN EACH CASE, THE FINDINGS OF THE DEPARTMENT AS TO THE
RESPONSIBILITY OF THE PERSON LIABLE FOR THE TAX ARE FINAL AND
CONCLUSIVE.

(F)  (1) THE TAX IMPOSED BY THIS SUBTITLE AND ALL INCREASES,
INTERESTS AND PENALTIES THEREON SHALL BECOME, FROM THE TIME DUE
AND PAYABLE, A PERSONAL DEBT OF THE PERSON LIABLE TO PAY THE SAME
TO THE STATE OF MARYLAND. AN ACTION MAY BE BROUGHT AT ANY TIME
WITH 3 YEARS FROM THE TIME THE TAX SHALL BE DUE AND PAYABLE BY
THE DEPARTMENT IN THE NAME OF THE STATE TO RECOVER THE AMOUNT OF
ANY TAXES, PENALTIES AND INTEREST DUE UNDER THE PROVISIONS OF
THIS SUBTITLE, BUT IF THERE IS PROOF OF FRAUD OR GROSS
NEGLIGENCE, THERE SHALL BE NO LIMITATION OF THE PERIOD IN WHICH
THE ACTION MAY BE BROUGHT. PROOF OF NEGLIGENCE AMOUNTING TO 25
PERCENT OR MORE OF THE TAX DUE SHALL BE PRIMA FACIE EVIDENCE OF
GROSS NEGLIGENCE.