50 LAWS OF MARYLAND [CH. 26

tion 323 (d) of said Article and sub-title be and it is hereby repealed
and re-enacted, with amendments; and that a new Section 323(d-1)
be and it is hereby added thereto, to follow immediately 'after said
Section 323 (d), and all to read as follows:

311.

(b) Distribution to counties and cities. —As soon as practicable
after the filing of individual income tax returns on the due dates as
prescribed herein, and in no case later than six months thereafter,
the Comptroller shall pay over and distribute to the counties and
cities of this State the respective shares to which they are entitled
under Section 323 (A) of this sub-title.

311.

(c) Second distribution to counties and Baltimore City. —As soon
as practicable after October 31, I960, and October 31 of each year
thereafter, but in no case later than forty-five days thereafter, the
Comptroller is authorized to pay over and distribute to such of the
counties of this State and Baltimore City the respective shares to
which they may become entitled under Section 323 (d-1) of this sub-
title.

323.

(d) Distribution paid from and computed by taxes collected dur-
ing fiscal year. —Beginning with the fiscal year ending June 30, 1957,
and thereafter, the amount to be distributed hereunder shall be paid
from income taxes collected during such fiscal year and such dis-
tribution shall be computed on the taxable income of individuals in
returns filed by them during" such fiscal year and on which the tax
due has been paid except to the extent that such taxes shall have
been previously distributed.

(d-1) Distribution paid from withholding receipts and estimated
tax payments. —Beginning with the fiscal year ending June 30, 1961,
and thereafter, the Comptroller is authorized in his discretion upon
the request of the governing fiscal body of the several counties and
the City of Baltimore, to make a second distribution of income tax
receipts. In exercising the discretion conferred hereby, the Comp-
troller shall take into consideration the revenue needs of the county
or Baltimore City making the request as well as the financial condi-
tion of the State. The Comptroller may by regulation prescribe the
form of the request and determine what is the governing fiscal body
of any county or the City of Baltimore making a request hereunder.
The second amount to be distributed hereunder shall be paid from
withholding receipts and estimated tax payments collected for the
quarters ending June 30 and September 30 of the year of such dis-
tribution, and such distribution shall be computed on the basis of an
estimate by the Comptroller of the amount of such collections pay-
able hereunder. In making such estimate, the Comptroller shall
determine the percentages of the total amounts of collections found
due to the counties and cities of this State based upon the final
returns of taxpayers for the preceding fiscal year and shall apply
such percentages to such collections to be distributed, after first
deducting therefrom a sufficient reserve (i) for the payment of
refunds due and to become due to taxpayers and (ii) to protect the
State in a final accounting when the actual amounts payable to each
county and city may be determined.