ble the direct payment of all obligations of the State by the State
Treasury Department and gives the central accounting office of the
State an opportunity to pass upon all vouchers before payment. It
had not been possible to provide for direct payment of all vouchers
because of the impossibility of one man, the Comptroller, being able
to sign all warrants and checks which would be necessary if this plan
were put into effect. A similar provision was approved for the State
Treasurer's Office so that the State Treasurer will be authorized to
appoint a deputy, or deputies, to sign checks in payment of State
obligations.
MARYLAND INCOME TAX LAW

The Maryland Income Tax Law of 1939 became effective April
13, 1939, and provides for the imposition of a tax upon taxable income
with respect to income received during the calendar year 1939 and
thereafter.

The State Comptroller is required to administer the provisions of
the Act. One-fourth of the tax collected from resident individuals is
to be paid to political sub-divisions of the State and the remainder of
the tax collected is to be paid into the treasury of the State.

RESIDENT INDIVIDUALS

A resident is taxable upon his entire net income as defined in the
Act of purposes of taxation.

The law defines investment income to include dividends, ground
rents, annuity income and interest, except interest earned in the con-
duct of a business on (1) loans made under the provisions of Article
59A of the Annotated Code of Maryland, (2) business accounts and
notes receivable, or (3) installment contracts. Ordinary income in-
cludes that portion of gross income which is not investment income.

Personal exemptions are provided under the Status of $1,000.00 in
the case of a single person or a married person not living with hus-
band or wife; $2,000.00 in the case of the head of a family or a
married person living with husband or wife, however, where joint
or two separate returns are filed by husband and wife the combined
exemption must not exceed $2,000.00; and $400.00 for each dependent
person under eighteen years of age or incapable of self-support because
mentally or physically defective.

The tax imposed is computed by adding 6 % of the investment income
to 2 1/2% of the ordinary income, and subtracting therefrom 2 1/2%
of the sum of the allowable deductions and personal exemptions.

NON-RESIDENT INDIVIDUALS

A non-resident is taxable upon income derived from tangible
property, real or personal, permanently located in Maryland (whether
received directly or from a fiduciary) and such intangible property
as has acquired a business or commercial situs in Maryland and
income from business, trade, profession or occupation carried on in
Maryland.

The personal exemptions accorded a non-resident are the same as
those allowed a resident.

The tax imposed upon a non-resident is computed by adding 6 %
of the taxable investment to 2 1/2% of the taxable ordinary income
and subtracting therefrom 2 1/2% of the allowable deductions and
exemptions.
FIDUCIARIES

The fiduciary is liable for tax only with respect to that portion
of the income of the fiduciary estate as is accumulated and not paid,
distributed or credited to or for the benefit of a beneficiary thereof.