Ch. 3                                       1994 LAWS OF MARYLAND

4.       A private individual residing in the State; or

5.       A business entity that is located in the State and not licensed
under this article.                                                       

(ii) A permit holder may receive commercially-produced wine that is
not authorized for distribution and sale in the State from:                             

1.       A nonresident private individual; or

2.       A business entity that is located outside of this State.

(9)     (i) Wine that is received from the following sources is subject to
Maryland tax as provided under § 5-102 of the Tax - General Article:

1.       Wholesalers licensed under this article;

2.       Class 3 and 4 wineries licensed under this article; and

3.       Any other source outside of this State.

(ii) Wine that is received from the following sources is presumed to
have been tax-paid:

1.       Retail dealers licensed under this article;

2.       Private individuals residing in this State; and

3.       Business entities that are located in this State and not
licensed under this article.

(10)   (i) Within 30 days from the close of the auction, the permit holder
shall file a report and pay all taxes that are due and owing on the wine that is received for
the auction.                                                                                                   

(ii) The report shall be filed with the [State] OFFICE OF THE
Comptroller and shall include the total number of gallons of wine that was received for
the auction and the sources from which it was received.

(iii) The [State] OFFICE OF THE Comptroller shall provide the forms
for the report.

(11)   The [State] OFFICE OF THE Comptroller may require that, within 7
days from the date of the auction, the permit holder prepay a satisfactory sum to cover
the anticipated wine tax that is due and owing.

(12)   (i) Wines that have been purchased at auction shall be delivered to
the purchaser at the event or from a licensed warehouse or retail premise or other
premise that is approved by the [State] OFFICE OF THE Comptroller.

(ii) All wines delivered are subject to the applicable State sales taxes.

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