WILLIAM DONALD SCHAEFER, Governor

Ch. 2

Defined terms: "Buyer" § 11-101

"Comptroller" § 1-101 "Retail sale" § 11-101

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

11-407. SAME -- DIRECT PAY PERMIT FOR BUYER.

(A)  PERMIT FROM COMPTROLLER.

(1)  A VENDOR LICENSED UNDER SUBTITLE 7 OF THIS TITLE
MAY SUBMIT TO THE COMPTROLLER AN APPLICATION FOR AUTHORITY TO
MAKE DIRECT PAYMENT, TO THE COMPTROLLER, OF THE SALES AND USE TAX
DUE ON A PURCHASE BY THAT VENDOR.

(2)  IF THE COMPTROLLER APPROVES THE APPLICATION, THE
COMPTROLLER MAY ISSUE TO THE APPLICANT A PERMIT TO EVIDENCE THE
DIRECT PAYMENT AUTHORITY.

(3)  THE COMPTROLLER MAY:

(I)  ISSUE THE PERMIT SUBJECT TO REASONABLE AND
NECESSARY TERMS AND CONDITIONS; AND

(II)  REVOKE THE DIRECT PAYMENT PERMIT AT ANY
TIME FOR CAUSE.

(B)  EFFECT OF DIRECT PAYMENT PERMIT ON COLLECTION.

A VENDOR WHO RECEIVES EVIDENCE THAT THE BUYER HAS A DIRECT
PAYMENT PERMIT IS DISCHARGED FROM:

(1)  THE DUTY TO COLLECT THE SALES AND USE TAX; AND

(2)  THE LIABILITY FOR THE SALES AND USE TAX.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, §
360A, the second clause of the third sentence of §
333, as that clause required that a certificate be
furnished, and § 399, as that section applied the
direct payment provisions to the former use tax.

Subsection (a) of this section is rephrased to provide
for application, issuance, conditions, and revocation
of a permit.

In the introductory language of subsection (b) of this
section, the defined term "buyer" is substituted for
the former word "permittee", for clarity.

Also in the introductory language of subsection (b) of
this section, the former word "lessor" is deleted as
unnecessary in light of the word "vendor".

Defined terms: "Buyer" § 11-101

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