WILLIAM DONALD SCHAEFER, Governor

Ch. 2

(A)  4-YEAR LIMIT.

EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, AN
ACTION TO RECOVER ADMISSIONS AND AMUSEMENT TAX, MOTOR FUEL TAX,
OR SALES AND USE TAX MAY NOT BE BROUGHT AFTER 4 YEARS FROM THE
DATE ON WHICH THE TAX IS DUE.

(B)  NO LIMIT.

(1)  (I) AN ACTION TO RECOVER ADMISSIONS AND AMUSEMENT
TAX OR SALES AND USE TAX MAY BE BROUGHT AT ANY TIME IF THERE IS
PROOF THAT THE TAX IS NOT PAID DUE TO FRAUD OR GROSS NEGLIGENCE.

(II) AN UNDERPAYMENT OF 25% OR MORE OF THE
SALES AND USE TAX DUE IS PRIMA FACIE EVIDENCE OF GROSS
NEGLIGENCE.

(2)  AN ACTION TO RECOVER MOTOR FUEL TAX MAY BE
BROUGHT AT ANY TIME IF THERE IS PROOF THAT THE TAX IS NOT PAID
DUE TO FRAUD.

REVISOR'S NOTE: This section is new language derived
without substantive change from the second sentence of
former Art. 56, § 154(a) and the second and third
sentences of former Art. 81, §§ 342(a), 393(a), and
409A(a).

In this section, the former word "payable" is deleted
as surplusage in light of the word "due".

The Tax - General Article Review Committee notes that
representatives of the Comptroller's Office objected
to placing subsection (a) within the following section
captioned "Time for Collections". The Court of
Special Appeals of Maryland, in Osborne v.
Comptroller, 67 Md. App. 555 (1986), appeal dismissed,
308 Md. 322 (1987), held that the language of former
Art. 81, § 342(a) was a limitation period on
collections. The Comptroller's Office believes that
the section expresses a period of limitations on
assessments of tax, rather than for collections. The
placement and language utilized by the Tax - General
Article Review Committee preserves the status quo on
this point.

The third sentence of former Art. 56, § 154(a), which
related to the types of action included as "action[s]
to recover" taxes, is deleted as surplusage.

Defined terms: "Admissions and amusement tax" § 1-101
"Motor fuel tax" § 1-101 "Sales and use tax" § 1-101

13-1103. TIME FOR COLLECTIONS.

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