Ch. 451                                     1993 LAWS OF MARYLAND

                       Article - Tax - General                                           

11-407.

(a)     (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.

(A) (1) ON OR AFTER JULY 1, 1993, THE COMPTROLLER MAY NOT:

(I) GRANT THE AUTHORITY TO MAKE DIRECT PAYMENT, TO THE
COMPTROLLER, OF SALES AND USE TAX DUE ON PURCHASES BY A VENDOR; OR

                          (II) ISSUE PERMITS EVIDENCING SUCH AUTHORITY.

(2) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (1) OF THIS
SUBSECTION, THE COMPTROLLER MAY CONTINUE TO ADMINISTER DIRECT PAYMENT
PERMITS ISSUED TO VENDORS BEFORE JULY 1, 1993.

(3) The Comptroller may:

(i) issue ALLOW THE USE OF the permit subject to reasonable and
necessary terms and conditions; and

(ii) revoke the direct payment permit at any time for cause.

(b)     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.

11-601.

(b) (1) A vendor who makes a sale subject to the sales and use tax shall pay the
sales and use tax that the vendor collects for that sale with the return that covers the
period in which the vendor makes that sale.

(2)     A vendor who, under a direct payment permit, makes a purchase of use
subject to the sales and use tax shall pay the sales and use tax for that purchase or use
with the return that covers the period in which the vendor makes that purchase or use.

(3)     A vendor who makes a sale subject to the sales and use tax under a
prepayment authorization or through a vending machine shall pay the sales and use tax on
that sale with the return that covers the period in which the vendor makes that sale.

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