1078 LAWS or MARYLAND. [CH. 509

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That a new section be and the same is hereby added to
Article 48A of the 1935 Supplement to the Annotated Code of
the Public General Laws of Maryland, title "Insurance", sub-
title "General Provisions", said new section to follow imme-
diately after Section 39 and to be known as Section 39A, and
to read as follows:

39A. TAX ON PREMIUMS OF DOMESTIC LIFE INSURANCE COM-
PANIES HAVING A CAPITAL STOCK. The shares of stock of
every domestic life insurance company having a capital stock
shall be exempt from assessment and taxation of every kind
and the owners of such shares shall not be liable for the pay-
ment of any taxes in respect of such shares. Every such com-
pany shall pay annually to the Insurance Commissioner, in
lieu of all other taxes of every kind, including any tax on its
shares which are exempted from taxation as hereinbefore
provided, except State and City or County taxes upon the real
estate of said companies, and except taxes upon shares of
stock in any national bank or in any corporation organized
under the laws of the State and liable to taxation hereunder
a tax equal to one and one-half per cent. (1V£%) of
the net premiums collected by such company during the
calendar year preceding the taxable year from its policy-
holders residing in this State; it being understood that
net premiums shall mean gross premiums less returned pre-
miums on canceled policies and less premiums on reinsurance-
effected in companies authorized to do business in this State
and shall not include annuity premiums or premiums on
policies covering weekly disability benefits and on which
premiums are payable weekly. A report under oath of the
premiums so collected shall be made to the Insurance Com-
missioner annually by the chief accounting officer or officers
of each such company. Provided, however, that such com-
panies shall be liable for the payment of an annual franchise
tax which such companies would pay if they were ordinary
business corporations.

SEC. 2. And be it further enacted, That all laws and parts
of laws inconsistent herewith be and the same are hereby re-
pealed in so far as the same are inconsistent with the pro-
visions of this Act, and no further.

SEC. 3. And be it further enacted, That this Act shall take
effect June 1, 1937.

Approved May 28, 1937.