Ch. 2                                    LAWS OF MARYLAND

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, §§
329(b) and 381(b), as those sections related to sales
through vending machines..

Defined terms: "Comptroller"     § 1-101

"Purchaser" § 11-101 "Sales   and use tax" § 1-101

"Tangible personal property"     § 11-101
"Vendor" § 11-101

11-406. SAME -- PREPAYMENT OF TAX.

(A) PREPAYMENT AUTHORITY.

(1)  IF THE NATURE OF A VENDOR'S BUSINESS MAKES THE
COLLECTION OF THE SALES AND USE TAX AT THE TIME OF A RETAIL SALE
IMPRACTICABLE, THE VENDOR MAY SUBMIT TO THE COMPTROLLER AN
APPLICATION FOR AUTHORITY TO PREPAY THE TAX.

(2)  IF THE COMPTROLLER APPROVES THE APPLICATION, THE
COMPTROLLER MAY IMPOSE ON THE APPLICANT ANY CONDITION THAT IS
REASONABLE UNDER THE CIRCUMSTANCES.

(3)  IF THE COMPTROLLER DENIES AN APPLICATION OR
IMPOSES A CONDITION ON THE APPLICANT, THE COMPTROLLER SHALL:

AND

THE ACTION.

(I)  GIVE THE APPLICANT NOTICE OF THE ACTION;

(II)  SCHEDULE A PROMPT HEARING FOR REVIEW OF

(4) AN APPLICANT MAY WAIVE THE HEARING UNDER
PARAGRAPH (3) OF THIS SUBSECTION.

(B) EFFECT OF PREPAYMENT AUTHORITY.

A VENDOR WHO OBTAINS AUTHORITY TO PREPAY THE TAX UNDER THIS
SECTION:

(1)  SHALL PAY THE SALES AND USE TAX TO THE
COMPTROLLER; AND

(2)  MAY NOT COLLECT THE SALES AND USE TAX FROM THE
BUYER AS A SEPARATELY STATED ITEM.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, §
332(b), (c), and the first sentence of (a) and, as
they related to prepayment, §§ 329(b) and 381(b).

The second sentence of former Art. 81, § 332(a), which
made prepayment "a waiver of the duty to collect"
sales and use tax, is deleted as surplusage in light
of the prohibition, in subsection (b)(1) of this
section, against collection.

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