Sec. 6. 36 MRSA §176-A, sub-§3, śC, as amended by PL 2001, c. 583, §6, is further amended to read:

C. Any person who fails or refuses to surrender any property or rights to property, subject to levy, upon demand by the assessor:

(1) Is liable in person and estate to the State in a sum equal to the value of the property not so surrendered, but not exceeding the amount of taxes for the collection of which the levy has been made, together with costs and interests interest at the rate determined pursuant to section 186 on the sum from the date of the levy. Any amount, other than costs, recovered under this paragraph must be credited against the tax liability for the collection of which the levy was made; and

(2) Without reasonable cause, is liable for a penalty equal to 50% of the amount recoverable under subparagraph (1). A part of the penalty may not be credited against the tax liability for the collection of which the levy was made.

It is lawful for the assessor to collect the liability as determined established by this paragraph by levy upon the person's property in accordance with the provisions of this section assessment and collection in the manner described in this Part.

Sec. 7. 36 MRSA §178 is enacted to read:

§178. Priority of tax

Whenever the estate of a deceased person liable for any tax is insufficient to pay all the debts owed by the decedent or whenever the estate and effects of an absconding, concealed or absent person liable for any tax are levied upon by process of law, the tax, together with interest attaching thereto, must be first settled. This section may not be construed to give the State a preference over any recorded lien that attached prior to the date when the tax became due.

Sec. 8. 36 MRSA §200, sub-§1, as amended by PL 2001, c. 652, §6, is further amended to read: