ROBERT L. EHRLICH, JR., Governor                             Ch. 298

an appeal showing cause why the tax is not paid when due. Any amounts received
from any dealer or owner under this subsection shall be credited first to penalty and
interest accrued and then to tax due.                                                                 

(2) If the failure to pay the tax is due to an attempt to defraud, then the
penalty shall be, in lieu of the penalty more specifically provided for under paragraph
(1) of this subsection, 100% of the tax due plus interest at the rate of 1.5% per month
or fraction of a month from the time due until paid.

(e)     (1) If the Department finds that any dealer or other person liable for the
tax imposed by this subtitle intends to depart from the State, remove the dealer's or
other person's property from the State, conceal the dealer or other person or their
property in the State, or do any other act tending to prejudice or render wholly or
partly ineffectual proceedings to collect the tax, the Department shall notify the
dealer or other person of its findings and demand an immediate payment of the tax,
interest, and penalty.

(2)     If the amount of tax, interest, and penalty specified in the notice of
jeopardy assessment is not paid within 10 days of the service of the notice, the
Department may bring any action that the Department considers advisable for the
prompt collection of the tax.

(3)     If, within 10 days of the service of the notice, the person liable for the
tax files with the Department satisfactory evidence that the person is not in default in
paying the tax or that the person will duly return and pay the tax, then the tax is not
payable before the time otherwise required by this section. However, in each case, the
findings of the Department as to the responsibility of the person liable for the tax are
final and conclusive.

(f)      (1) The tax imposed by this subtitle and all increases, interests, and
penalties on the tax shall become, from the time due and payable, a personal debt of
the person liable to pay the tax to the State of Maryland. An action may be brought at
any time within 3 years from the time the tax shall be due and payable by the
Department in the name of the State to recover the amount of any taxes, penalties,
and interest due under the provisions of this subtitle, but if there is proof of fraud or
gross negligence, there shall be no limitation of the period in which the action may be
brought. Proof of negligence amounting to 25% or more of the tax due shall be prima
facie evidence of gross negligence.

(2) The tax and all increases, interests, and penalties on the tax shall be
a lien upon all the property, real or personal, of any person liable to pay the tax to the
State from and after the time when notice has been given that the tax has become due
and payable as provided in this section. Notice of the lien shall be filed promptly by
the Department with the clerk of the circuit court of the county in which the property
is located or Baltimore City. Each clerk of court accurately and promptly shall record
and index all the notices of lien filed with the clerk by the Department and shall enter
the lien in the judgment docket of the court, stating the name of the delinquent
taxpayer, the amount of the lien and the date of the lien. The lien provided for in this
section shall have the full force and effect of a lien of judgment. Unless another date
is specified by law, the lien arising at the date of nonpayment, as in this section

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