Title 13, Chapter 4, Section 43
(a) When a contract calls for one party to reimburse the other party
for the federal manufacturer's excise tax levied by Part III of
Subchapter A of Chapter 32 of the United States Internal Revenue
Code, whether as a separate item or as part of the price, there
shall exist for the party making the reimbursement a contractual
right relating to the timing of that payment which can be invoked at
the option of such party as provided in subsection (b) of this Code
(b) The party making the reimbursement shall not be required to
tender payment for such taxes more than one business day prior to
the time that the other party is required to remit such taxes to the
United States Internal Revenue Service.
(c) Should a party choose to exercise the option provided in
subsections (a) and (b) of this Code section, the other party may
demand security for the payment of the taxes in proportion to the
amount such taxes represent compared to the security demanded on the
contract as a whole. Such party, however, may not change the other
payment terms of the contract without a valid business reason other
than to exercise the option as provided in subsections (a) and (b)
of this Code section except to require the payment of such taxes
under such option to be made by electronic transfer of funds.
(d) The party exercising the option set out in subsections (a) and
(b) of this Code section shall notify the other party in writing of
the intent to exercise such payment option and the effective date of
the exercise which shall be no earlier than 30 days after the notice
of intent is received or the beginning of the next federal tax
quarter, whichever is later.
(e) This Code section shall apply to all contracts now in effect
which have no expiration date and are continuing contracts and to
all other contracts entered into or renewed after July 1, 1993. Any
contract in force and effect on July 1, 1993, which, by its own
terms will terminate on a date subsequent thereto, shall be governed
by the law as it existed prior to July 1, 1993.
(f) The option set out in subsections (a) and (b) of this Code
section shall not be construed to impair the obligations arising
under any contract executed prior to July 1, 1993. Should the
option set out in subsections (a) and (b) of this Code section be
exercised, it shall not relieve such party of the obligation to make
the reimbursement as provided for in the contract but shall affect
only the timing of when that reimbursement must be tendered.