52 LAWS OF MARYLAND. [CH. 11

business income; but if such trade or business is carried on
partly within and partly without this State, the tax shall be
imposed only on the portion of the business income reasonably
attributable to the trade or business within this State, to be
determined in the event separate accounting is impracticable
as follows:

(a) Interest, dividends, rents and royalties (less related
expenses) received in connection with business in this State,
shall be allocated to this State and where received in connec-
tion with business outside of this State shall be allocated
outside of this State.

(b) Gains, includible in gross income under Sections 216
and 220 from the sale of capital assets or property held,
owned or used in connection with the trade or business of a
corporation hut not for sale in the regular course of business,
shall be allocated to this State if the property sold is real or
tangible personal property situated in this State, or intangi-
ble property connected with the business in this State.

(c) Net income of the above classes having been separately
allocated and deducted as above provided, the remainder of
the net business income of a corporation shall be allocated and
apportioned as follows:

(1) Where income is derived from business other than the
manufacture and sale of tangible personal property or the
conduct of a public utility, such income shall be separately
allocated or equitably apportioned within and without this
State under rules and regulations of the Comptroller.

(2) Where income is derived from the manufacture or sale
of tangible personal property, the portion thereof attributable
to business within the State shall be taken to be such per-
centage of the total of such income as the value of the tangible
property and business within this State bears to the value of
the total tangible property and total business, the percentage
of tangible property and of business being separately deter-
mined as hereinafter provided and the two percentages aver-
aged.

(3) For the purpose of the foregoing computation, the
value of the tangible property shall be taken to be the average
value of the tangible property held and owned by the corpo-
ration in connection with such business during the year for
which the income is returned, excluding any property the in-
come of which is not taxable or separately allocated under
the foregoing provisions of this sub-title.

(4) The business of the corporation shall be measured by
the amount of all receipts during the year from sales and