Unpaid tax, interest, and penalties shall be first paid and satisfied from the proceeds of a sale of any property of a person liable for the tax. Notwithstanding subsection (a) of this section, a claim of a tax collector for unpaid tax, interest, and penalties shall be subordinate: to the claim of any purchaser, holder of a security interest, or mechanic’s lienor, as those terms are defined in § 6323(h) of the Internal Revenue Code, or to the claim of a judgment creditor whose lien attached before the claim for unpaid tax, interest, and penalties; and to any claim described in § 6323(b), (c), or (d) of the Internal Revenue Code. A judicial officer who makes a sale of property shall determine from a tax collector whether the owner of the property owes any tax, interest, or penalties. The judicial officer is personally liable and the bond of the officer is liable for any tax, interest, or penalties not paid to the tax collector in violation of this section. Whenever property is taken in execution of an action to collect taxes, the tax collector may bid for and buy the property for the use of the State if the tax collector believes the purchase is necessary and proper for the protection of the State. A bid under paragraph (1) of this subsection may not exceed the claim of the State for unpaid taxes and the costs and expenses of the sale.

If the transferee or auctioneer in a bulk transfer fails to file the notice required in § 11-505 of this article or to retain consideration in an amount equal to the claim of the Comptroller for unpaid sales and use tax: any consideration in the bulk transfer is subject to a first priority right and lien for any sales and use tax that the transferor owes to the State; and the transferee or auctioneer is personally liable for the sales and use tax, interest and penalties that the transferor owes to the State.

In this section the following words have the meanings indicated. “Account” means: any funds from a demand deposit account, checking account, negotiable order of withdrawal account, savings account, time deposit account, money market mutual fund account, or certificate of deposit account; any funds paid towards the purchase of shares or other interest in a financial institution, as defined in paragraph (4)(ii) and (iii) of this subsection; and any funds or property held by a financial institution, as defined in paragraph (4)(iv) or (v) of this subsection. “Account” does not include: an account or portion of an account to which an obligor does not have access due to the pledge of the funds as security for a loan or other obligation; funds or property deposited to an account after the time that the financial institution initially attaches the account; an account or portion of an account to which the financial institution has a present right to exercise a right of setoff; an account or portion of an account that has an account holder of interest named as an owner on the account; or an account or portion of an account to which the obligor does not have an unconditional right of access. “Account holder of interest” means any person, other than the obligor, who asserts an ownership interest in an account. “Financial institution” means: a depository institution, as defined in the Federal Deposit Insurance Act under 12 U.S.C. § 1813(c); a federal credit union or State credit union, as defined in the Federal Credit Union Act under 12 U.S.C. § 1752; a State credit union regulated under Title 6 of the Financial Institutions Article; a virtual currency money transmitter that is regulated under Title 12 of the Financial Institutions Article; or a benefit association, insurance company, safe deposit company, money market mutual fund, or similar entity doing business in the State that holds property or maintains accounts reflecting property belonging to others. “Obligor” means a person whose property is subject to a tax lien. The Comptroller may request from a financial institution information and assistance to enable the Comptroller to enforce the tax laws of the State. The Comptroller may request not more than four times a year from a financial institution the information set forth in subsection (d)(2) of this section concerning any obligor who is delinquent in the payment of taxes. A request for information by the Comptroller under paragraph (1) of this subsection shall: contain: the full name of the obligor and any other names known to be used by the obligor; and the Social Security number or other taxpayer identification number of the obligor; and be transmitted to the financial institution in an electronic format unless the financial institution specifically asks the Comptroller to submit the request in writing. Within 30 days after a financial institution receives a request for information under subsection (c) of this section, the financial institution shall, with respect to each obligor whose name the Comptroller submitted to the financial institution, submit a report to the Comptroller. Except as provided in subparagraph (ii) of this paragraph, the report described in paragraph (1) of this subsection shall contain, to the extent reflected in the records of the financial institution: the full name of the obligor; the address of the obligor; the Social Security number or other taxpayer identification number of the obligor; any other identifying information needed to ensure positive identification of the obligor; and for each account of the obligor, the obligor’s account number and balance. For a financial institution that submits reports through the Federal Parent Locator Service under 42 U.S.C. § 666(a)(17), the report described in paragraph (1) of this subsection may contain information that meets the specifications required for financial data match reports under the Federal Parent Locator Service. A report submitted under paragraph (1) of this subsection shall be provided to the Comptroller in machine-readable form. The Comptroller shall pay the financial institution a reasonable fee, not to exceed the actual costs incurred by the financial institution to comply with the requirements of this section, less any fees received from other units of the State for the same report. The Comptroller may institute civil proceedings to enforce this section. A financial institution that complies with a request from the Comptroller by submitting a report to the Comptroller in accordance with subsection (d) of this section is not liable under State law to any person for any: disclosure of information to the Comptroller under this section; or other action taken in good faith to comply with the requirements of this section. A financial institution furnishing a report to the Comptroller under this section is prohibited from disclosing to an obligor that the name of that obligor has been received from or furnished to the Comptroller.

Unpaid tax, interest, and penalties constitute a lien, in favor of the State, extending to all property and rights to property belonging to: the person required to pay the tax; or the fiduciary estate on which the tax is imposed. Unpaid inheritance tax, interest, and penalties constitute a lien, in favor of the State, extending to: the assets of a small business for which an alternative payment schedule was granted under § 7-218 of this article; and any other property on which inheritance tax is due. Unpaid Maryland estate tax and interest constitute a lien, in favor of the State, extending to the estate that is subject to the Maryland estate tax. Unpaid Maryland generation-skipping transfer tax and interest constitute a lien, in favor of the State, extending to any property included in the generation-skipping transfer for which the Maryland generation-skipping transfer tax is due.

Unless another date is specified by law and except for a lien under subsection (b) of this section, a lien arises on the date of notice that the tax is due and continues until the earlier of: the date on which the lien is: satisfied; or released by the tax collector because the lien is: unenforceable by reason of lapse of time; or uncollectible; or 20 years after the date of assessment. Except as otherwise provided in this subsection, a lien for unpaid inheritance tax: arises on the date of distribution; and continues for 20 years. If the property is subject to a special valuation under § 7–211 of this article, a lien: arises on the date on which the interest in the property vests in possession; and continues for 20 years. If the unpaid inheritance tax is attributable to the disqualification of property that was qualified for special valuation or exemption under § 7–211 of this article, the lien: arises on the date on which the decedent died; and continues for 20 years.

A tax collector may file a notice of tax lien with the clerk of the circuit court for the county where the property that is subject to the lien is located. On receipt of a notice of tax lien, the clerk of a circuit court promptly shall: record and index the lien; and enter the lien in the judgment docket of the court. The docket entry shall include: the name of the person whose property is subject to the tax lien; and the amount and date of the tax lien.

From the date on which a tax lien is filed under § 13-807 of this subtitle, the lien has the full force and effect of a judgment lien.

A tax lien shall be first paid and satisfied from the proceeds of a sale of any property of a person liable for the tax. Notwithstanding subsection (a) of this section, a tax lien is not valid against any purchaser, holder of a security interest, mechanic’s lienor, or judgment lien creditor until notice of the tax lien has been filed under § 13-807 of this subtitle. Even if notice of a tax lien is filed, the lien is not valid against any claim described in § 6323(b), (c), or (d) of the Internal Revenue Code. The rules and definitions in § 6323(e), (h), and (i) of the Internal Revenue Code shall apply in construing this section.

If a tax lien is not satisfied or released on or before the 15th day after the notice of the lien is filed, recorded, and indexed under § 13-807 of this subtitle, a qualified attorney who is a regular salaried employee of the Comptroller or, at the request of the tax collector, the Attorney General may bring an action in a court of the State to enforce the lien. The following persons shall be made parties to the proceeding: each person who has a lien on the property that is sought to be subjected to the proceedings; and each person who claims a right to or an interest in the property that is sought to be subjected to the proceedings. The court, acting without a jury, shall: adjudicate all matters involved in the proceedings; and determine the merits of all claims or liens. If the claim or interest of the State is established, the court may order: a sale of the property or rights to property; and a distribution of any proceeds of sale in accordance with the interests of the parties and the State.

In this section the following words have the meanings indicated. “Paymaster”: means an employer’s officer, representative, agent, or employee charged with the duty of paying salary, wages, or other compensation for personal services to an employee named in a notice of lien; and if the person named in a notice of lien is employed by the federal government or its instrumentality with an office in the State where employee records are kept, whether or not payroll records are kept or the payroll is prepared at that office, includes the employee who: is designated to keep and maintain employee records in that office; and is or may be designated to receive and distribute pay checks to the employees. “Tax wage lien” means the lien on wages described in this section. A tax lien for any tax administered by the Comptroller under this article extends to and covers all salary, wages, or other compensation for personal services that is due or becomes payable on or after the time the lien arises. The Comptroller promptly shall give notice of a tax wage lien that states the lien amount, the type of tax, and the name of the person against whom the lien is taken by: certified mail, return receipt requested, under the postmark of the United States Postal Service, to the employer; or personal service on the employer. If an employer knows or has reason to know of the import of the contents of the certified mail and refuses to accept its delivery, service as required under subsection (c)(1) of this section is made when delivery is refused. Service as required under subsection (c)(2) of this section is made when personal service is made on an officer or paymaster of the employer. From salary, wages, or other compensation for personal services that is due or becomes payable on or after the date on which a notice of wage lien is served to the date on which a notice of satisfaction or release of the wage lien is received, an employer or paymaster promptly shall pay to the Comptroller any salary, wages, or other compensation due to the delinquent taxpayer, excluding only those amounts specified in paragraph (2) of this subsection. The amount excluded under paragraph (1) of this subsection from amounts paid to the delinquent taxpayer is the amount exempt from attachment provided in § 15-601.1 of the Commercial Law Article. The Comptroller promptly shall give a notice of satisfaction or release of a tax wage lien to each employer or paymaster who received notice of the wage lien. If, after service of a notice of a tax wage lien, an employer or paymaster pays an employee salary, wages, or other compensation for personal services in excess of the amount allowed in subsection (e)(2) of this section, the employer or paymaster or both shall be personally liable for the excess amount paid to the employee. However, the total amount that the Comptroller recovers may not exceed the total amount paid to the employee in violation of this section.

In this section the following words have the meanings indicated. “Account”, “account holder of interest”, and “financial institution” have the meanings stated in § 13-804 of this subtitle. “Obligor” means a person whose property is subject to a tax lien. The Comptroller may send notice of a tax lien to any financial institution that the Comptroller reasonably believes holds property subject to a tax lien. The notice to be sent under this paragraph shall be provided by: first-class mail, under the postmark of the United States Postal Service, at the address designated for this purpose by the financial institution or, if no address has been designated, to the principal office of the financial institution; an electronic format agreed on by the Comptroller and the financial institution; or any other reasonable manner as agreed on by the Comptroller and the financial institution. The notice to be sent by the Comptroller to a financial institution under paragraph (1) of this subsection shall contain: the name of the obligor; the amount of the tax lien; the last known address of the obligor; the Social Security number or federal employer identification number of the obligor; and a notice to immediately seize and attach from one or more accounts held by the financial institution in the name of the obligor an aggregate amount equal to the lesser of the amounts in all accounts or the amount of the tax lien. On receipt of the notice described in subsection (b) of this section, the financial institution promptly shall seize and attach from one or more of the accounts of the obligor held by the financial institution an aggregate amount equal to the lesser of: the total of the amounts in all the accounts of the obligor held by the financial institution; or the amount stated in the notice sent under subsection (b) of this section. Within 30 days after the financial institution receives the notice directing it to seize and attach accounts of the obligor, the financial institution shall send notice to the Comptroller, in the manner specified in subsection (b) of this section, specifying the aggregate amount held under this subsection. The financial institution may assess a fee against the accounts or the obligor, in addition to the amount identified in the notice under subsection (b) of this section. In the case of insufficient funds to cover both the fee and the amount identified in the notice under subsection (b) of this section, the financial institution may first deduct and retain the fee from the amount seized and attached as provided in this section. The financial institution may not be held liable to any person, including the Comptroller, the obligor, or any account holder of interest, for wrongful dishonor or for any other claim relating to the seizure and attachment of an account or other actions taken in compliance with this section. Within 10 business days after the Comptroller has received notice from the financial institution under subsection (c)(2) of this section, the Comptroller shall send a notice to the obligor, by regular mail, to the obligor’s last known address. The notice shall contain the following information, to the extent known by the Comptroller: the address of the Comptroller; the telephone number, address, and name of a contact person at the Office of the Comptroller; the name and Social Security number, federal employer identification number, or other taxpayer identification number of the obligor; the address of the obligor; for each account of the obligor, the name of the financial institution that has seized and attached amounts as required by this section; the total amount of the tax lien owed by the obligor; the date the notice is being sent; a statement informing the obligor that the Comptroller has directed the financial institution to seize and attach the amount of the tax lien owed by the obligor from one or more of the accounts of the obligor and, on subsequent notice by the Comptroller, to forward the amount to the Comptroller; and a statement informing the obligor that, unless a timely challenge is made by the obligor or an account holder of interest under subsection (g) of this section, the Comptroller shall notify the financial institution to forward the amount seized and attached by the financial institution to the Comptroller. The Comptroller shall not be obligated to send the notice described in paragraphs (1) and (2) of this subsection if, prior to the time that the notice must be sent, the Comptroller and the obligor agree to an arrangement under which the obligor will pay amounts owed under the tax lien. If a timely challenge is not made by the obligor or an account holder of interest under subsection (g) of this section, the Comptroller shall send a notice to the financial institution, in the manner specified in subsection (b) of this section, directing the institution to: forward the amount seized and attached by the financial institution to the Comptroller; reduce the amount seized and attached by the financial institution to a revised amount as stated, forward the revised amount to the Comptroller, and release the excess amount; or release the amount seized and attached by the financial institution. The Comptroller may send the notice described in paragraph (1) of this subsection before the time for filing a timely challenge under subsection (g) of this section on agreement among the Comptroller, the obligor, and, if the Comptroller is aware of an account holder of interest, the account holder of interest. The Comptroller shall apply the amount seized and forwarded by the financial institution to the obligor’s tax lien obligation. An obligor or an account holder of interest may challenge the actions of the Comptroller under this section by filing a motion with the circuit court within 10 days of the date of the notice sent under subsection (d)(1) of this section. An obligor or an account holder of interest may challenge the actions of the Comptroller based on: a mistake in the identity of the obligor; a mistake in the ownership of the account; a mistake in the contents of the account; invalidity of the Comptroller’s actions under § 11-603 of the Courts Article; a mistake in the amount of the lien obligation due; or any other good cause. An obligor or an account holder of interest may not challenge the actions of the Comptroller based on a mistake or error in the original tax assessment underlying the tax lien against the obligor. The Comptroller may withdraw the notice to seize and attach accounts by sending notice to the financial institution, in the manner specified in subsection (b) of this section, directing the financial institution to release the attachment on the accounts. If a determination is made by the Comptroller or by the circuit court that the account or accounts of the obligor should not have been held, the Comptroller shall notify the financial institution, in the manner specified in subsection (b) of this section, to release the amount seized and attached by the financial institution. If a determination is made by the Comptroller or by the circuit court, pursuant to a challenge under subsection (g) of this section, to reduce the amount seized and attached by the financial institution, the Comptroller shall notify the financial institution, in the manner specified in subsection (b) of this section, to revise the amount as stated, forward the revised amount to the Comptroller, and release the excess amount seized and attached by the financial institution. If a challenge made under subsection (g) of this section is denied by the circuit court, the Comptroller shall notify the financial institution, in the manner specified in subsection (b) of this section, to forward the amount seized and attached by the financial institution to the Comptroller. A financial institution that complies with a notice from the Comptroller sent under this section is not liable under State law to any person for: any disclosure of information to the Comptroller under this section; seizing and attaching any amounts from an account or sending any amount seized and attached by the financial institution to the Comptroller; or any other action taken in good faith to comply with the requirements of this section. A financial institution has no obligation to reimburse fees assessed as a result of the Comptroller instituting an action under this section or as otherwise permitted by law or authorized by contract. This section may not be construed to prohibit the Comptroller from collecting taxes due from the obligor in any other manner authorized by law.

Within the period allowed in Subtitle 11 of this title, an action to collect tax imposed under this article may be brought in a court of competent jurisdiction. If a person owes State and county or municipal corporation taxes to the same tax collector, an action under this section may combine claims for those taxes.

If a tax under this article is not paid when due, the Governor, tax collector, or Treasurer shall ask a qualified attorney who is a regular salaried employee of the Comptroller or the Attorney General to bring an action against the person responsible to pay the tax, unless a lien on real property under Part II of this subtitle sufficiently secures the tax or a judgment in the action would not be collectible. If a request is made under subsection (a) of this section, the attorney or the Attorney General shall bring the action. In an action under this section, the plaintiff shall be: the State; the Treasurer; or the tax collector authorized by law to collect the tax. If the attorney or Attorney General and the tax collector agree that the full amount of the claim is not collectible, the attorney or Attorney General may: compromise the claim; accept a lesser amount; and issue a release of the claim or a satisfaction of the judgment.

In an action under § 13-816 of this subtitle, a request for attachment before judgment against any asset of the defendant may be filed in accordance with the Maryland Rules. The plaintiff in the action is not required to file an attachment bond.

If the plaintiff in an action under § 13-816 of this subtitle requests, the action shall be tried as soon as the action is at issue and shall take precedence over all other civil cases. In an action under § 13-816 of this subtitle, a certificate of the tax collector that shows the amount of tax, penalty, and interest due: is prima facie evidence of the amount of tax, penalty, and interest; and imposes on the defendant the burden of proving that the tax, penalty, and interest have been paid or any other defense.

Notwithstanding any other provision of this title, if a tax collector finds that the collection of a tax under this article will be jeopardized by the departure, from the State, of the person required to pay the tax, the removal of property from the State, the concealment of the person or the property, or any other act, the tax collector immediately may assess the tax, interest, and penalty as a jeopardy assessment. The tax collector shall mail to the person required to pay the tax a notice of jeopardy assessment that states: the findings about the jeopardy of tax collection; the amount of the assessment; and a demand that the person immediately: pay the assessment; or submit evidence that collection of the tax is not in jeopardy. The findings of the tax collector about the jeopardy of tax collection are final and conclusive. If, within the 10 days after a notice of jeopardy assessment is mailed, a person fails to comply with the notice, the tax collector may take any action to collect the unpaid tax as authorized under this title.

To protect tax revenue, a tax collector may, to the extent allowed or required under § 13-825 of this subtitle: set an amount to secure payment of the tax, interest, and penalty that is due or may become due; and require acceptable security to be posted.

The Comptroller may require a person whose gross receipts are subject to admissions and amusement tax and whose business is not a permanent operation in the State to post security for the tax in the amount that the Comptroller determines. The Comptroller shall require: a manufacturer, wholesaler, or nonresident winery permit holder who sells or delivers beer or wine to retailers in the State to post security for the alcoholic beverage tax: in an amount not less than: $1,000 for beer; and $1,000 for wine; and if the alcoholic beverage tax on beer and wine paid in any 1 month exceeds $1,000, in an additional amount at least equal to the excess; a manufacturer or wholesaler who sells or delivers any distilled spirits or any wine and distilled spirits in the State to post a security for the alcoholic beverage tax: in an amount not less than $5,000; and in an additional amount: equal to twice the amount of its largest monthly alcoholic beverage tax liability for wine and distilled spirits in the preceding calendar year less $5,000; or if the information for the preceding calendar year is not available or cannot be provided, equal to the amount that the Comptroller requires; and except as provided in subsection (i) of this section, a holder of a direct wine shipper’s permit to post security for the alcoholic beverage tax in an amount not less than $1,000. The Comptroller may require a person whose gross receipts are subject to the boxing and wrestling tax to post security for the boxing and wrestling tax in the amount that the Comptroller determines. The Comptroller may require a real estate investment trust to post security for income tax in the amount that the Comptroller requires, if the trust: does not hold property in the State; or holds insufficient property in the State to provide adequate security for the income tax if the property were to become subject to a lien under this subtitle. The Comptroller may require a person seeking a refund of motor carrier tax to post security for the tax in an amount of not less than $5,000 but not more than $100,000. The Comptroller shall require an applicant for any license under Title 9 of this article, except for a Class “W” license, to post security for the motor fuel tax in the amount that the Comptroller requires, but not less than: $200,000 for a Class “A” license; $50,000 for a Class “B” license; $10,000 for a Class “C” license; $200,000 for a Class “D” license; $1,000 for a Class “F” license; $10,000 for a Class “G–Temporary” license; $1,000 for a Class “S” license; and $1,000 for a Class “U” license. The Comptroller may require a person subject to the sales and use tax to post security for the tax in the amount that the Comptroller determines. The Comptroller may require a person subject to the tobacco tax to post security for the tax in the following amounts: for a manufacturer or wholesaler: $10,000; plus the amount, if any, by which the tobacco tax due for any 1 month exceeds $10,000; for a subwholesaler or vending machine operator: $1,000; plus the amount, if any, by which the tobacco tax due for any 1 month exceeds $1,000; for an other tobacco products wholesaler: $5,000; plus the amount, if any, by which the tobacco tax due for any 1 month exceeds $5,000; and for an out–of–state seller: $5,000; plus the amount, if any, by which the tobacco tax due for any reporting period exceeds $5,000. Except as provided in paragraph (5) of this subsection, the Comptroller may exempt a person from posting security for the tobacco tax if the person is and has been for the past 5 years: licensed as required under § 16–202 of the Business Regulation Article to act as a wholesaler, § 16.5–201 to act as an other tobacco products wholesaler, or § 16.9–201 to act as a remote tobacco seller; and in continuous compliance with the tobacco tax laws, as determined under paragraph (3) of this subsection; and in continuous compliance with the conditions of the person’s security posted under this subsection. For purposes of paragraph (2) of this subsection, a person is in continuous compliance with the tobacco tax laws for a period if the person has not, at any time during that period: failed to pay any tobacco tax or any tobacco tax assessment when due; failed to file a tobacco tax return when due; or otherwise violated any of the provisions of this title, Title 12 of this article, or Title 16, Title 16.5, or Title 16.9 of the Business Regulation Article. An exemption granted under paragraph (2) of this subsection is effective only to the extent that a person’s potential tobacco tax liability does not exceed an amount determined by the Comptroller based on the person’s experience during the 5–year compliance period under paragraph (2) of this subsection. The Comptroller may revoke an exemption granted to a person under paragraph (2) of this subsection if the person at any time fails to be in continuous compliance with the tobacco tax laws, as described in paragraph (3) of this subsection. The Comptroller may reinstate an exemption revoked under subparagraph (ii) of this paragraph if the person meets the requirements of paragraph (2)(i) and (ii) of this subsection for a period of 2 years following the revocation. The Comptroller may not exempt a person from posting a bond or other security for the tobacco tax unless the Comptroller determines that the person is solvent and financially able to pay the person’s potential tobacco tax liability. If a corporation is granted an exemption from posting a bond or other security for the tobacco tax, any officer of the corporation who exercises direct control over its fiscal management is personally liable for any tobacco tax, interest and penalties owed by the corporation. A person need not post security under subsection (b)(3) of this section if: the person is a manufacturer that has posted security under subsection (b)(2) of this section; or at any time starting 3 years after the Comptroller first issues a direct wine shipper’s permit to the person, the Comptroller: determines that the person has a substantial record of tax and reporting compliance; and waives the security requirement.

The following securities are acceptable: a bond issued by a surety company that is authorized to do business in the State and is approved by the State Insurance Commissioner as to solvency and responsibility; cash in an amount that the tax collector approves; marketable securities that the tax collector approves; or for admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, and tobacco tax, an irrevocable letter of credit: in an amount that the Comptroller approves; and with a date certain for coverage during the collection period.

When a tax collector requires a person to post security under § 13-825 of this subtitle, the tax collector shall mail the person a notice of the requirement and the amount required to be posted.

If, within 5 days after the date on which the notice to post security is mailed to a person, the person submits to the tax collector a written request for a hearing, the tax collector shall: hold the hearing; and at the hearing, make a final determination of the necessity for, propriety of, and amount of the security. The tax collector shall mail the person a notice of the final determination.

Except as provided in subsection (b) of this section, a person shall post the security required under § 13-825 of this subtitle within 5 days after the date on which the notice is mailed under § 13-827 of this subtitle. If a hearing is held under § 13-828 of this subtitle, a person shall post the security within 15 days after the date on which the notice of the tax collector’s final determination is mailed.

If the tax, interest, and penalty are not paid when due, the tax collector, without notice to the person who posted the security under § 13-829 of this subtitle, may: apply a cash or security deposit to the tax, interest, or penalty; or sell a security at public or private auction and apply the proceeds of the sale to the tax, interest, or penalty.

Except for a liability that has accrued or will accrue before the date of release or discharge, a surety is released and discharged from liability on a bond to the State 60 days after the surety submits to the tax collector a written request for release or discharge. On receipt of a written request from a surety for release and discharge, the tax collector promptly shall give the person who posted the bond notice that: the surety has asked to be released and discharged from liability on the bond; and a substitute security must be filed before the date on which the surety is released and discharged under subsection (a) of this section.

Subject to the limitation in subsection (b) of this section, if a tax under this article is referred for collection to an independent agency with which the Comptroller has contracted for the collection of taxes, in addition to interest and penalties required to be assessed under this subtitle the Comptroller shall assess a collection fee sufficient to cover all collection costs charged by the agency to the Comptroller. The collection fee assessed by the Comptroller under paragraph (a) of this section may not, as a percentage, exceed the percentage of the fee charged by the Central Collection Unit in accordance with § 3-304(a)(2) of the State Finance and Procurement Article. For reasonable cause, the Comptroller may waive or reduce a collection fee assessed under this section.

In this Part VI of this subtitle the following words have the meanings indicated. “Contraband alcoholic beverage” means an alcoholic beverage, as defined in § 5–101 of this article: on which alcoholic beverage tax is not paid; and that is delivered, possessed, sold, or transported in the State in a manner not authorized under Title 5 of this article or the Alcoholic Beverages Article. “Contraband tobacco products” means cigarettes or other tobacco products, as defined in § 12-101 of this article: on which tobacco tax is not paid; and that are delivered, possessed, sold, or transported in the State in a manner not authorized under Title 12 of this article or Title 16 of the Business Regulation Article. “Contraband motor fuel” means motor fuel, as defined in § 9-101 of this article: on which motor fuel tax is not paid; and that is delivered, possessed, sold, or transferred in the State in a manner not authorized under Title 9 of this article or Title 10 of the Business Regulation Article. “Conveyance” means: an aircraft, vehicle, or vessel used to transport alcoholic beverages, cigarettes, or other tobacco products; and a tank car, vehicle, or vessel that is used to transport motor fuel and that, exclusive of any tank used for its own propulsion, has a capacity exceeding 50 gallons.

The Comptroller, the Executive Director, or a peace officer of the State may: seize contraband alcoholic beverages or contraband tobacco products in the State without a warrant; stop and search a conveyance in the State if the Comptroller, the Executive Director, or officer knows or has reason to suspect that the conveyance is being used to transport in the State contraband tobacco products having a retail value of $100 or more or contraband alcoholic beverages; and seize a conveyance being used in the State to transport contraband alcoholic beverages or contraband tobacco products. A police officer of the State may: seize any contraband motor fuel in the State without a warrant; stop and search a conveyance in the State for contraband motor fuel if the officer has probable cause to believe that the conveyance is being used to carry contraband motor fuel in the State; and seize a conveyance being used to transport contraband motor fuel.

If contraband alcoholic beverages or contraband tobacco products are seized: the Comptroller, the Executive Director, or police officer shall give a notice of seizure to the person from whom the property is seized at the time of the seizure; and the Comptroller or the Executive Director shall: where possible, give a notice of seizure to the registered owner of a seized conveyance; and publish a notice of seizure of the conveyance in a newspaper of general circulation in the county where the seizure occurred. If contraband motor fuel is seized, within 48 hours after the seizure, not including weekends and holidays, the Comptroller shall give a notice of seizure to: the owner of the contraband motor fuel; the registered owner of the seized conveyance; and any secured party noted in the records of the Motor Vehicle Administration. A notice of seizure shall state the right of an owner or other interested person, including a secured party of record, to file a claim for the return of the seized property. A police officer who seizes a conveyance used to transport contraband alcoholic beverages promptly shall notify the Comptroller and the Executive Director of the seizure. A police officer who seizes any contraband tobacco products or conveyance used to transport contraband tobacco products shall deliver the seized cigarettes or other tobacco products and conveyance to the Comptroller or the Executive Director, as appropriate. A police officer who seizes any contraband motor fuel shall: deliver the seized contraband motor fuel and conveyance to the Comptroller; or if the seized conveyance is operated by a common carrier, regulated by either the Maryland Public Service Commission or the Interstate Commerce Commission, and transports motor fuel for another person, for a fee, direct the operator of the conveyance to take it to a location that the Comptroller designates. For a seized conveyance transporting contraband motor fuel that is operated by a common carrier, the Comptroller shall: remove the contraband from the conveyance at the location that the Comptroller designates; retain the contraband, subject to §§ 13-840 and 13-841 of this subtitle; after removing the contraband, release the conveyance to its operator; and reimburse the common carrier for all tariff charges applicable to the movement of the conveyance from: the place of seizure to the location where the contraband motor fuel was removed; and the place where the contraband motor fuel was removed to the nearer of the common carrier’s home terminal or the place of seizure.

The owner or another person with an interest in seized property may file a claim for the return of the property with the Comptroller or the Executive Director within 30 days after: the seizure of alcoholic beverages, cigarettes, other tobacco products, motor fuel or conveyances used to transport motor fuel; or a notice of seizure of a conveyance used to transport alcoholic beverages, cigarettes, or other tobacco products is published.

A person forfeits any interest, right, or title to property that is seized for violation of the alcoholic beverage tax laws if the person: fails to file a claim for return of the seized property within the time allowed under § 13–837 of this subtitle; or is adjudged guilty of violating the alcoholic beverage tax laws. If, within the time allowed to file a claim under § 13–837 of this subtitle, a person who has a lien interest in property seized for violation of the alcoholic beverage tax law files a petition, the circuit court for the county in which property is seized shall proceed in rem to hear and determine the question of forfeiture of the interest by the lien holder. If the circuit court finds that the lien holder had knowledge of the intended unlawful use of the property, the interest, right, and title of a lien holder shall be forfeited. Absent a finding under paragraph (2) of this subsection, the Comptroller or the Executive Director, as appropriate, in the best interest of the State may: pay the outstanding indebtedness secured by the lawful lien and keep the property; or deliver the property to the lien holder.

If a person files a claim for return of seized alcoholic beverages, cigarettes, other tobacco products, or a conveyance used for their transportation under § 13–837 of this subtitle, the Comptroller, the Executive Director, or their designee shall: promptly act on the request and hold an informal hearing; direct the return of alcoholic beverages, cigarettes, or other tobacco products unless the Comptroller, the Executive Director, or their designee has satisfactory proof that the person was not in compliance with any provisions of Title 5 or Title 12 of this article at the time of seizure; and direct the return of the conveyance if the Comptroller, the Executive Director, or their designee has satisfactory proof that the owner of the conveyance was not willfully evading any provisions of Title 5 or Title 12 of this article at the time of seizure. The Comptroller, the Executive Director, or their designee shall grant or deny the application for return of seized alcoholic beverages, cigarettes, other tobacco products, or a conveyance in accordance with subsection (a) of this section by mailing the person a notice of final determination.

If a person files with the Comptroller a claim for return of the seized motor fuel or conveyances used in its transportation, the Comptroller shall: provide an opportunity for a hearing; and if requested by the claimant, conduct the hearing within 5 working days after the claim is received. The Comptroller shall: make a final determination of whether the property should be forfeited within 2 working days after the date of the conclusion of the hearing; and mail a notice of the final determination on the date on which that determination is made.

Contraband alcoholic beverages that are seized under this title and forfeited may be disposed of or destroyed in the manner allowed under §§ 6–105, 6–106, and 6–328 of the Alcoholic Beverages and Cannabis Article. The Comptroller or the Executive Director, as appropriate, shall sell at public auction a conveyance that is seized under this title in connection with contraband alcoholic beverages and forfeited. The Comptroller or the Executive Director, as appropriate, shall sell contraband tobacco products seized under this title and forfeited to a State institution, a nonprofit charitable institution, a licensed cigarette wholesaler, or a licensed cigarette manufacturer in the manner the Comptroller or Executive Director determines. The Comptroller or the Executive Director, as appropriate, shall sell at public auction a conveyance that is seized under this title in connection with contraband tobacco products and forfeited. If either the Comptroller or, on appeal, a court determines that seized conveyance or motor fuel is not subject to forfeiture: the Comptroller is not required to return the motor fuel seized to the owner or other interested person who filed the claim for return of the property, but may, at the option of the Comptroller, pay to the person an amount equal to the value of the motor fuel as determined by the average wholesale value on the date of seizure for the Baltimore Terminal as reported by a nationally recognized oil price reporting service on the date of seizure; and the Comptroller shall return the conveyance to the registered owner and shall have no further liability to the registered owner. If a seized conveyance or motor fuel is forfeited, the Comptroller shall: use the contraband motor fuel for any public purpose; or sell the contraband motor fuel to any person; and sell the seized conveyance to any person. In the manner required under Title 2 of this article for distributions of revenue, the Comptroller shall distribute the net proceeds from the sale of any conveyance or other property under this section after paying: the costs incurred in conjunction with the seizure and disposal of the property; the cost of the sale; and any bona fide lien against the conveyance. If the Executive Director sells at public auction a conveyance or other property seized under this section, the Executive Director shall transfer the net proceeds of the sale to the Comptroller for distribution under Title 2 of this article.

A person who possessed contraband alcoholic beverages, contraband tobacco products, or contraband motor fuel that are seized and sold under this section is not relieved from any penalty under this title.

Except as provided in subsection (b) of this section, if the inheritance tax determined on an interest in property under § 7-209, § 7-210, or § 7-211 of this article is not paid when due, the court that has jurisdiction to administer the estate shall order the personal representative to sell as much of the interest in property on which inheritance tax is unpaid as is necessary to: pay inheritance tax on the property; and pay the expenses of the sale. A court may not order the sale of an interest in property under subsection (a) of this section after the period provided for the lien on the property under § 13-806 of this subtitle has expired.