Whenever any person, firm or corporation enters into a contract or agreement with the state or any political subdivision thereof it shall be a term or condition of such contract that the state or such political subdivision shall withhold or retain from the contract price provided for in such contract such sum or sums as will secure the payment of the taxes levied and assessed against the property of such contractor or against property for which such contractor may be liable for the payment of taxes thereon, until such taxes are paid by such contractor, or are authorized paid by him from the sums so withheld, provided the collector of taxes or other person responsible for the collection of such taxes notifies the treasurer of the state or political subdivision that such taxes have been assessed but are unpaid. Such notice shall not be given to the treasurer as aforesaid until the expiration of a period of 10 days after the collector or other person responsible for the collection of the taxes has presented or sent by first class mail, postage prepaid, addressed to the last known address of such contractor a tax bill, or a duplicate or copy of the tax bill presented or sent to a subcontractor or lessee for the payment of whose taxes said contractor is liable together with a notation to said contractor stating therein a date certain when said collector or other person responsible for the collection of such taxes will notify the treasurer as aforesaid. If the taxes so assessed are not paid by the person, firm or corporation liable therefor by December 1 of the year of assessment, the treasurer, upon notice from the collector of taxes that the taxes remain unpaid, shall pay over the amounts withheld to the collector and take his receipt therefor which shall be a full and complete discharge of the treasurer from any further liability for the sum so withheld. If on December 1 the person, firm or corporation is not entitled to sufficient sums under the contract from which the treasurer can withhold the amount of taxes due, the treasurer as soon thereafter as sufficient sums are available for the purpose shall immediately pay over to the collector the sums so withheld. If the person, firm or corporation shall pay to the collector the taxes for which he or it is liable after notice to withhold by the collector to the treasurer, the collector shall immediately notify the treasurer so withholding, and the sum so withheld shall be paid to the person, firm or corporation, if otherwise due.