Ch. 2

LAWS OF MARYLAND

"Comptroller" § 1-101

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

11-408. SAME -- WHEN BUYER REQUIRED TO DEMONSTRATE EXEMPTION.

(A)  WHEN EVIDENCE OF EXEMPTION REQUIRED.

IF A BUYER IS REQUIRED UNDER SUBTITLE 2 OF THIS TITLE OR BY
REGULATION TO PROVIDE A VENDOR WITH EVIDENCE OF AN EXEMPTION, THE
VENDOR MAY NOT RECOGNIZE THE EXEMPTION UNLESS THE BUYER, BEFORE
THE SALE IS CONSUMMATED, PROVIDES THE VENDOR WITH:

(1)  EVIDENCE THAT THE BUYER HAS AN EXEMPTION
CERTIFICATE; OR

(2)  THE EVIDENCE THAT THE COMPTROLLER REQUIRES BY
REGULATION.

(B)  WHEN RESALE CERTIFICATE REQUIRED.

(1)  THE DUTY OF A VENDOR TO COLLECT THE SALES AND USE
TAX FROM A BUYER IS WAIVED IF THE BUYER PROVIDES THE VENDOR WITH
A SIGNED RESALE CERTIFICATE THAT:

(I)  IS IN THE FORM THAT THE COMPTROLLER
REQUIRES BY REGULATION;

(II)  STATES THE NAME, ADDRESS, AND REGISTRATION
CERTIFICATE NUMBER OF THE BUYER; AND

(III)  CONTAINS A STATEMENT TO THE EFFECT THAT
THE TANGIBLE PERSONAL PROPERTY OR TAXABLE SERVICE IS BOUGHT FOR
THE PURPOSE OF RESALE.

(2)  A VENDOR MAY NOT ACCEPT A RESALE CERTIFICATE IF
THE VENDOR KNOWS OR SHOULD KNOW THAT THE SALE IS NOT FOR THE
PURPOSE OF RESALE.

(3)  A VENDOR SHALL OBTAIN A RESALE CERTIFICATE FROM A
BUYER:

(I)  BEFORE THE SALE IS CONSUMMATED; OR

(II)  IF THE VENDOR RECEIVES A NOTICE OF THE
COMPTROLLER'S INTENT TO ASSESS SALES AND USE TAX FOR FAILURE TO
OBTAIN A PROPER RESALE CERTIFICATE, WITHIN 60 DAYS AFTER THE DATE
ON WHICH THE NOTICE IS MAILED.

(4)  IF THE VENDOR FAILS TO OBTAIN THE RESALE
CERTIFICATE AS REQUIRED, THE COMPTROLLER'S ASSESSMENT UNDER
PARAGRAPH (3)(II) OF THIS SUBSECTION IS FINAL.

REVISOR'S NOTE: This section is new language derived
without substantive change, from former Art. 81, §
333A, the third of § 326(i)(3)(ii), the first and

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