476 LAWS OF MARYLAND. [CH. 277

located in this State (whether received directly or from a
fiduciary) and such intangible property as has acquired a
business or commercial situs in this State and income from
business, trade, profession or occupation carried on in this
State, shall be taxable in this State; provided, however, that
income derived from intangible personal property held by a
resident or by a domestic corporation as fiduciary, guardian,
committee or trustee for an incompetent, or as agent for a
non-resident principal (unless such property is used in con-
nection with the trade, business, profession or occupation of
such principal) shall not be taxable in this State. The proper
apportionment of income derived in connection with trade,
business, profession or occupation carried on within and
without the State shall be determined under rules and regu-
lations of the Comptroller.

223. Imposition of Tax. (a) There is hereby annually
levied and imposed for each taxable year a tax on the net
income of every resident individual of this State and on the
net income, taxable in this State, of every individual not a
resident of this State. Such tax shall be computed by adding
6% of the investment income to 2½% of the ordinary income,
and subtracting from the amount thus arrived at 2½% of the
sum of the deductions allowed by Section 217 hereof (as
limited by Section 218 hereof) and the personal exemptions
allowed by Section 221 hereof.

(b) There is hereby annually levied and imposed for each
taxable year, a tax on the net income of every corporation
(domestic or foreign) at the rate of 1½% of such portion
thereof as is allocable to this State under the provisions of
Section 246 hereof; provided, however, that national banks;
State banks, trust companies and domestic Mutual Building
and Loan Associations, including mutual savings institutions,
both national and of this State, and religious, educational,
charitable, social, fraternal and other similar corporations not
organized or conducted for profit, no part of the net earnings
of which inure to the benefit of any private shareholder or
individual, and farmers' or other mutual hail, cyclone, casu-
alty, or fire insurance companies or associations (including
interinsurers and reciprocal underwriters) the income of
which is used or held for the purpose of paying losses or ex-
penses, shall not be liable for said tax.

(c) No tax imposed under the provisions of this sub-title
on any person with respect to ground rent received by him,
shall be collected from the lessee by the lessor, and any agree-
ment, expressed or implied, entered into by a lessor and a
lessee providing for the payment of such tax by the lessee
shall be void.