3122 ARTICLE 81

to a place without this State, with the bona fide intention of continuing
to abide permanently without this State, shall be taxable the same as a
non-resident is taxable under this sub-title. The fact that a person who
has changed his place of abode, within six months from so doing, again
resides within this State, shall be prima facie evidence that he did not
intend to have his place of abode permanently without this State. Every
individual other than a resident shall be deemed a non-resident.

(j) "Dividend" means any distribution made by a corporation (do-
mestic or foreign) out of its net profits, whenever earned, to its stock-
holders or members, whether such distribution be made in cash or other
property, except stock of the same class in the corporation. Amounts paid
in liquidation or dissolution of a corporation shall be treated as dividends
to the extent that they represent earnings of the corporation.

(k) "Ground rents" means all rents reserved under ninety-nine year
leases or sub-leases, perpetually renewable, and also rents which are re-
deemable, at the option of the lessee, under the provisions of Sections 110,
111 and 115 of Article 21 of the Annotated Code of Maryland.
(1) "Annuity income" means an amount equal to three per cent. (3%)
per annum of the aggregate premiums or consideration paid for any an-
nuity.

(m) "Interest" means interest from whatever source derived, and in-
cludes interest from bonds, certificates of indebtedness, evidences of debt,
judgments, notes, mortgages and money at interest.

(n) "Investment income" means that portion of the gross income which
is derived from 'dividends, ground rents, annuity income and interest, but
shall not include interest earned in the conduct of a business on (1) loans
made under the provisions of Article 58A of the Annotated Code of Mary-
land, (2) business accounts and notes receivable, or (3) instalment con-
tracts.

(o) "Ordinary income" means that portion of the gross income which
is not investment income.

1939, ch. 277, sec. 216.

223. (Gross Income and Exclusions Therefrom.) "Gross income"
means income from whatever source derived, including salaries, wages or
compensation for personal services of whatever kind and in whatever
form, paid; interest, dividends, rents, royalties and annuity income; and
gains, profits and income derived from professions, vocations, trades, busi-
nesses and commerce. "Gross income" shall not include the following:

(a) Capital gains realized from the sale, exchange or other disposition
of property held by a taxpayer (whether or not connected with his trade
or business) other than stock in trade of the taxpayer or other property
of a kind that would properly be included in the inventory of the taxpayer
if on hand at the close of the taxable year, or property held by the tax-
payer primarily for sale to customers in the ordinary course of his trade
or business.

(b) The proceeds of life insurance policies paid by reason of the death
of. the. insured.

(c) Amounts received (other than amounts paid by reason of the death
of the insured) under life insurance or endowment contracts, either during
the term or at maturity or upon surrender of the contract, equal to the
total amount of the premiums paid therefor.