after December 31, 1940. Chapters 223, 382, 792, 906 and 912, which
also amended the income tax law apply to the calendar year 1941
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 subdivisions 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
husband or wife; $2000 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 ex-
emption must not exceed $2,000.00; and $400.00 for each dependent
person under eighteen years of age or incapable of self-support be-
cause mentally or physically defective.

The tax imposed shall be computed at the rate of 6% on the amount
of the taxable net income up to but not exceeding the amount of the
investment income and at the rate of 2% on the balance, if any, of
the taxable net income.

NON-RESIDENT INIVIDUALS

A non-resident is taxable upon income as is derived from tangible
property, real or personal, permanently located in this State (whether
received directly or from a fiduciary) and income from business,
trade, profession or occupation carried on in this State.

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

The tax imposed upon a non-resident shall be computed at the
rate of 6% on the amount of the taxable net income up to but
not exceeding the amount of the investment income and at the rate of
2% on the balance, if any, of the taxable net income.

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.

The respective factors to be used in the computation of tax are that
proportion of the investment income, ordinary income and allowable
deductions, respectively, of the fiduciary estate for the taxable year
as is equivalent to the ratio of the accumulated net income to the
total net income of the fiduciary estate for such year.

A fiduciary is allowed a personal exemption of $200.00 to apply to
the net income of the fiduciary estate which is accumulated.

The tax imposed shall be computed at the rate of 5% on the amount
of the taxable net income up to but not exceeding the amount of the