ROBERT L. EHRLICH, JR., Governor

Ch. 203

A. AT WHICH A PERSON IS DOING BUSINESS IN ITS OWN
NAME IN A REGULAR AND SYSTEMATIC MANNER; AND

B. THAT IS CONTINUOUSLY MAINTAINED, OCCUPIED, AND
USED BY THE PERSON IN CARRYING ON ITS BUSINESS THROUGH ITS REGULAR
EMPLOYEES REGULARLY IN ATTENDANCE.

(II) "REGULAR PLACE OF BUSINESS" DOES NOT INCLUDE A
TEMPORARY OFFICE AT THE SITE OF CONSTRUCTION.

(B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OR (3) OF THIS
SUBSECTION, ANY PERSON DOING BUSINESS WITH A NONRESIDENT CONTRACTOR
UNDER A CONTRACT THAT EQUALS OR EXCEEDS $50,000 OR REASONABLY CAN BE
EXPECTED TO EQUAL OR EXCEED $50,000 SHALL WITHHOLD PAYMENT OF 3% OF THE
CONTRACT PRICE UNTIL 30 DAYS AFTER THE NONRESIDENT CONTRACTOR HAS:

(I) COMPLETED THE CONTRACT;

(II) REQUESTED IN WRITING FOR THE COMPTROLLER TO ISSUE A
TAX CLEARANCE CERTIFICATE; AND

(III) PROVIDED A RECEIPTED COPY OF THE REQUEST TO THE
PERSON REQUIRED TO WITHHOLD THE PAYMENT.

(2) THIS SUBSECTION APPLIES ONLY TO A PERSON WHO ENTERS INTO A
DIRECT CONTRACT WITH A NONRESIDENT CONTRACTOR AND MAY NOT BE
CONSTRUED TO IMPOSE ANY LIABILITY ON AN OWNER OF PROPERTY UNLESS THE
OWNER ENTERS INTO A DIRECT CONTRACT WITH A NONRESIDENT CONTRACTOR.

(3) THIS SUBSECTION DOES NOT APPLY TO:

(I) AN OWNER OF PROPERTY WHO CONTRACTS FOR THE
IMPROVEMENT OF RESIDENTIAL REAL PROPERTY THAT THE OWNER OCCUPIES OR
INTENDS TO OCCUPY; OR

(II) A CONTRACT FOR THE IMPROVEMENT OF REAL PROPERTY IF
THE TOTAL VALUE OF THE IMPROVEMENT IS LESS THAN $500,000 OR A
SUBCONTRACT UNDER A CONTRACT FOR THE IMPROVEMENT OF REAL PROPERTY IF
THE TOTAL VALUE OF THE IMPROVEMENT IS LESS THAN $500,000.

(C) (1) WITHIN 30 DAYS AFTER RECEIPT OF A WRITTEN REQUEST FOR A TAX
CLEARANCE CERTIFICATE, THE COMPTROLLER SHALL FURNISH TO THE
NONRESIDENT CONTRACTOR AND TO THE PERSON REQUIRED TO WITHHOLD THE
PAYMENT:

(I) A CERTIFICATE OF NO TAX DUE FROM THE NONRESIDENT
CONTRACTOR; OR

(II) A CERTIFICATE THAT TAXES ARE DUE, INCLUDING THE
AMOUNT OF SALES AND USE TAX, INCOME TAX WITHHELD, OR BOTH, DUE FROM THE
NONRESIDENT CONTRACTOR INCLUDING ANY INTEREST AND PENALTIES.

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