Ch. 203

2003 LAWS OF MARYLAND

(2) IF THE COMPTROLLER FURNISHES A CERTIFICATE OF NO TAX DUE
FROM THE NONRESIDENT CONTRACTOR OR IF THE COMPTROLLER FAILS TO
PROVIDE, WITHIN 30 DAYS AFTER RECEIPT OF A WRITTEN REQUEST FOR A TAX
CLEARANCE CERTIFICATE, TO BOTH THE NONRESIDENT CONTRACTOR AND THE
PERSON REQUIRED TO WITHHOLD THE PAYMENT, A CERTIFICATE UNDER
PARAGRAPH (1)(I) OR (II) OF THIS SUBSECTION THE PERSON REQUIRED TO
WITHHOLD THE PAYMENT MAY PAY THE NONRESIDENT CONTRACTOR THE AMOUNT
WITHHELD UNDER THE TERMS OF THE CONTRACT FREE FROM ANY CLAIMS OF THE
COMPTROLLER AGAINST THE PERSON REQUIRED TO WITHHOLD THE PAYMENT.

(3) IF THE COMPTROLLER FURNISHES A CERTIFICATE THAT TAXES ARE
DUE FROM THE NONRESIDENT CONTRACTOR THE PERSON REQUIRED TO WITHHOLD
THE PAYMENT:

(I) SHALL PAY OVER TO THE COMPTROLLER THE AMOUNT DUE AS
STATED IN THE CERTIFICATE UP TO 3% OF THE CONTRACT PRICE, TAKING A RECEIPT
FOR THE AMOUNT; AND

(II) MAY PAY TO THE NONRESIDENT CONTRACTOR THE EXCESS OF
THE AMOUNT WITHHELD OVER THE AMOUNT DUE AS STATED IN THE CERTIFICATE.

(4) ON PAYING OVER AMOUNTS WITHHELD TO THE COMPTROLLER AS
REQUIRED UNDER PARAGRAPH (3) OF THIS SUBSECTION, THE PERSON REQUIRED TO
WITHHOLD THE PAYMENT IS FREE FROM:

(I) ANY CLAIM OF THE NONRESIDENT CONTRACTOR FOR THAT
AMOUNT; AND

(II) ANY CLAIM OF THE COMPTROLLER FOR TAXES DUE FROM THE
NONRESIDENT CONTRACTOR

(D) (1) A PERSON THAT FAILS TO WITHHOLD OR TO PAY OVER THE
AMOUNTS WITHHELD AS REQUIRED IN THIS SECTION SHALL BE PERSONALLY
LIABLE FOR THE PAYMENT OF ANY SALES AND USE TAX OR INCOME TAX WITHHELD
ATTRIBUTABLE TO THE CONTRACT UP TO 3% OF THE CONTRACT PRICE.

(2) THE AMOUNTS UNDER PARAGRAPH (1) OF THIS SUBSECTION SHALL
BE RECOVERABLE BY THE COMPTROLLER BY APPROPRIATE LEGAL PROCEEDINGS,
WHICH MAY INCLUDE THE ISSUANCE OF AN ASSESSMENT UNDER THIS ARTICLE.

(E) (1) A NONRESIDENT CONTRACTOR'S LIABILITY FOR ANY SALES AND USE
TAX OR INCOME TAX WITHHELD ATTRIBUTABLE TO A CONTRACT THAT IS SUBJECT
TO THIS SECTION IS NOT AFFECTED BY:

(I) THE COMPTROLLER'S FAILURE TO PROVIDE A CERTIFICATE
UNDER SUBSECTION (C)(1)(I) OR (II) OF THIS SECTION WITHIN 30 DAYS AFTER
RECEIPT OF A WRITTEN REQUEST FOR A TAX CLEARANCE CERTIFICATE; OR

(II) THE ISSUANCE OF AN ERRONEOUS CERTIFICATE BY THE
COMPTROLLER UNDER THIS SECTION.

- 1838 -