WILLIAM DONALD SCHAEFER, Governor                         Ch. 139

10-906.

(a) Except as provided in § 10-907 of this subtitle, each employer or payor shall:

(1) withhold the income tax required to be withhold under [§ 10-908] §
10-908 OR § 10-908.1 of this subtitle; and

10-908.1.

(A) IN THIS SECTION THE FOLLOWING TERMS HAVE THE MEANINGS
INDICATED.

(1) "PURCHASER", "PROPERTY", AND "VENDOR" HAVE THE MEANINGS
PROVIDED IN § 1-101 OF THE REAL PROPERTY ARTICLE.

(2) "REAL PROPERTY ESTATE REPORTING PERSON" HAS THE MEANING
PROVIDED IN § 6045 OF THE INTERNAL REVENUE CODE.

(3) "SALE" INCLUDES THE ASSIGNMENT OF A LEASEHOLD INTEREST IN
PROPERTY.

(B) (1) SUBJECT TO SUBSECTION (C) OF THIS SECTION, IN THE CASE OF THE
SALE OF PROPERTY LOCATED IN THIS STATE BY A NONRESIDENT VENDOR, THE
REAL PROPERTY REPORTING PERSON SHALL WITHHOLD FROM THE GROSS
PROCEEDS OF THE SALE:

(I) IF THE VENDOR IS A CORPORATION, 7% OF THE CONTRACT
SALE PRICE; AND

(II) IF THE VENDOR IS NOT A CORPORATION, 5% OF THE
CONTRACT SALE PRICE.

(2) IF THE AMOUNT REQUIRED TO BE WITHHELD UNDER THIS
SUBSECTION EXCEEDS THE NET PROCEEDS PAYABLE TO THE VENDOR, THE REAL
ESTATE REPORTING PERSON SHALL WITHHOLD THOSE NET PROCEEDS.

(C) (1) IF THE VENDOR DETERMINES THAT THE AMOUNT REQUIRED TO BE
WITHHELD UNDER SUBSECTION (B) OF THIS SECTION WILL RESULT IN EXCESS
WITHHOLDING ON THE GAIN FROM THE SALE THE VENDOR MAY SUBMIT TO THE
REAL ESTATE REPORTING PERSON AN AFFIDAVIT STATING THE AMOUNT OF
TAXABLE GAIN REQUIRED TO BE RECOGNIZED ON THE SALE BY THE VENDOR.

(2) IF THE VENDOR SUBMITS SUCH AN AFFIDAVIT, THEN THE REAL
ESTATE REPORTING PERSON SHALL WITHHOLD THE APPLICABLE PERCENTAGE OF
THE AMOUNT OF TAXABLE GAIN REQUIRED TO BE RECOGNIZED ON THE SALE BY
THE VENDOR.

(3) IF THE AMOUNT REQUIRED TO BE WITHHELD UNDER THIS
SUBSECTION EXCEEDS THE NET PROCEEDS PAYABLE TO THE VENDOR, THE REAL
ESTATE REPORTING PERSON SHALL WITHHOLD THOSE NET PROCEEDS.

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