Ch. 283                                          LAWS OF MARYLAND

(2) THE TRANSFEREE OR AUCTIONEER knows that the
[vendor,] transferor[, or assignor] owes any sales and use tax.

[(d)] (B) If the Comptroller finds that [a vendor,] THE
transferor[, or assignor] owes sales and use tax, the Comptroller
shall [give the buyer notice of] FILE A claim for sales and use
tax due from the [vendor,] transferor[, or assignor] AT THE
ADDRESS REQUIRED IN THE NOTICE TO CREDITORS.

[(e)] (C) If the Comptroller [gives a buyer notice of]
FILES A claim [for sales and use tax] under subsection [(d)] (B)
of this section, the [buyer may not transfer] TRANSFEREE OR
AUCTIONEER SHALL WITHHOLD the amount stated in the claim FROM
DISTRIBUTION TO THE [to the vendor,] transferor[, or assignor in
a bulk sale].

13-802.

If the [buyer,] transferee[,] or [assignee] AUCTIONEER in a
bulk transfer fails to file the notice required in § 11-505 of
this article or to retain consideration in an amount equal to the
claim of the Comptroller for unpaid sales and use tax:

(1)  any consideration in the bulk transfer is subject
to a first priority right and lien for any sales and use tax that
the [seller,] transferor[, or assignor] owes to the State; and

(2)  the [buyer,] transferee[,] or [assignee]
AUCTIONEER is personally liable for the sales and use tax,
interest and penalties that the [seller,] transferor[, or
assignor] owes to the State.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect January 1, 1989.

Approved May 17, 1988.

CHAPTER 283

(Senate Bill 250)

AN ACT concerning

Sales and Use Taxes - Prohibition of Local Taxes

FOR the purpose of prohibiting local sales or use taxes;
providing exceptions to the prohibition; providing for the
effect of the prohibition on local taxes; clarifying

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