§600.__Liability for penalty

1.__Person liable for penalty.__The person liable for the penalty imposed on gain from the sale or exchange of land for timber harvesting is the transferor, which includes the owner, seller or other exchanger of the land for timber harvesting sold or exchanged.__Notwithstanding section 598, the person acquiring the land for timber harvesting shall certify to the State Tax Assessor that the building will begin within one year of the date of purchase and will be completed within 2 years from the date of purchase and the land will be sold within 3 years from the date of purchase to a person who will use the building as a principal residence.__If the conditions set forth in this subsection are not met, the penalty that is due from the seller must be paid by the buyer.

2.__Underlying land.__Notwithstanding any other provision of this section, when underlying land is sold separately from timber or rights to timber purchased with the underlying land and both sales occur within 10 years of the purchase, the gain on the sale of the timber and timber rights must be combined with the gain or loss on the sale of the underlying land to determine the penalty imposed on gain from the sale or exchange of land for timber harvesting.__If the sale of the underlying land occurs before the timber or timber rights are sold, the holding period used to calculate the penalty is the holding period of the underlying land.__This subsection applies only when one or more transactions within 10 years by the same transferor involve underlying land that is or was part or all of a tract of more than 100 acres of contiguous land owned by the same transferor at any time during the holding period.__Transferors owned or controlled directly or indirectly by the same interests are deemed to be the same transferor for purposes of this subsection.

§600-A.__Withholding; payment

1.__Consideration withheld.__The buyer or transferee of any land for timber harvesting held by the seller or transferor for less than 10 years shall withhold 10% of all consideration paid to the seller or transferor for the land, including 10% of all partial payments made pursuant to installment sales under section 600-B.__At the time any payment is made to the seller or transferor, the amounts withheld must be remitted to the State Tax Assessor.

2.__Return; file.__Within 30 days of the sale or exchange of land for which withholding is required under this section, the