H.B. 753

VETOES

10-910.

(b) (1) [An] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION,
AN employer shall base withholding for an employee:

[(1)](I) on the number of exemptions stated in the exemption certificate
that the employee files; or

[(2)] (II) if the employee fails to file an exemption certificate or files an
invalid certificate under subsection (c) of this section, on 1 exemption.

(2) IF THE COMPTROLLER NOTIFIES AN EMPLOYER THAT AN EMPLOYEE
HAS AN UNPAID TAX LIABILITY, THE EMPLOYER SHALL BASE WITHHOLDING FOR THE
EMPLOYEE ON A NUMBER OF EXEMPTIONS NOT EXCEEDING THE ACTUAL NUMBER
OF EXEMPTIONS ALLOWED ON THE EMPLOYEE'S PRIOR YEAR'S INCOME TAX RETURN,
AS SPECIFIED BY THE COMPTROLLER.

10-912.

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2) "NONRESIDENT CORPORATION" MEANS A CORPORATION THAT:

(I) IS NOT INCORPORATED IN THE STATE; AND

(II) IS NOT QUALIFIED BY THE DEPARTMENT OF ASSESSMENTS
AND TAXATION TO DO BUSINESS IN THE STATE.

(3) "TOTAL PAYMENT" MEANS THE NET PROCEEDS OF A SALE ACTUALLY
PAID TO A NONRESIDENT OR NONRESIDENT CORPORATION TRANSFEROR INCLUDING
THE FAIR MARKET VALUE OF ANY PROPERTY TO BE TRANSFERRED TO THE
TRANSFEROR.

(B) IN A SALE OR EXCHANGE OF REAL PROPERTY AND ASSOCIATED TANGIBLE
PERSONAL PROPERTY OWNED BY A NONRESIDENT OR NONRESIDENT CORPORATION,
THE TRANSFEREE OF THE PROPERTY SHALL DEDUCT AND WITHHOLD FROM THE
PAYMENT TO THE TRANSFEROR AN AMOUNT EQUAL TO 3% OF THE TOTAL PAYMENT.

(C) (1) A TRANSFEREE SUBJECT TO THE WITHHOLDING, DEDUCTION, AND
PAYMENT PROVISIONS OF THIS SECTION IS PERSONALLY LIABLE FOR ALL AMOUNTS
WITHHELD OR REQUIRED TO BE WITHHELD.

(2) THE AMOUNT REQUIRED TO BE WITHHELD UNDER THE PROVISIONS
OF THIS SECTION SHALL, UNTIL REMITTED, CONSTITUTE A LIEN UPON THE
PROPERTY OF THE TRANSFEREE.

(D) WITHIN 3 BUSINESS DAYS AFTER THE DATE OF CLOSING ON THE SALE OR
EXCHANGE OF THE PROPERTY, THE TRANSFEREE SHALL PAY OVER TO THE
COMPTROLLER THE AMOUNT DEDUCTED AND WITHHELD UNDER SUBSECTION (B) OF
THIS SECTION, USING FORMS PRESCRIBED BY THE COMPTROLLER.

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