208 LAWS OF MARYLAND. [CH. 251

251% relating to the manner of assessment of income of com-
mon trust funds.

SECTION 1. Be it enacted by the General Assembly of Mary-
land? That a new section be and the same is hereby enacted to
follow immediately after Section (e) of Article 81 of the
Annotated Code of Maryland (1943 Supplement), title "Reve-
nue and Taxes", sub-title "Rules of Construction", to be known
as Section 3 (f) and to read as follows:

3. (f) A "Common trust fund", as the same is defined in
Section 62A of Article 11, shall not be considered a corporation
or association, and shall not be subject to taxation under this
Article.

SEC. 2. And be it further enacted, That a new section be and
the same is hereby enacted to follow immediately after Section
251 of Article 81 of the Annotated Code of Maryland (1939
Edition), title "Revenue and Taxes", sub-title "Income Tax",
to be known as Section 251 1/2 and to read as follows:

25 1/2. (Income of "Common Trust Funds". ) (a) No in-
come tax shall be assessable hereunder upon the income of
any "common trust fund" as defined in Section 62A of Article
11, but all such income shall be assessable to the separate fidu-
ciary accounts participating in such fund according to their
proportionate interests and the same shall be reported by the
fiduciaries of the participating fiduciary accounts upon their
respective fiduciary income returns and shall be taxed to said
fiduciary accounts or the beneficiaries thereof along with their
other income at the rates and in the manner herein provided
for the taxation of income of fiduciary estates.

(b) In computing the tax of each fiduciary account par-
ticipating in a common trust fund, there shall be included in
its investment income, ordinary income and allowable deduc-
tions respectively, that proportion of the investment income,
ordinary income and allowable deductions respectively of the
common trust fund for the annual accounting period of the
common trust fund ending with or in the taxable year of such
participating fiduciary account, that such participating fidu-
ciary account's distributive share (whether distributed or not)
of the net income of the common trust fund for such annual
accounting period, bears to the total net income of the com-
mon trust fund for such annual accounting period.

SEC. 3. And be it further enacted, That this Act shall take
effect June 1, 1945.

Approved March 16, 1945.