THEODORE R. MCKELDIN, GOVERNOR 1799

Taxes", sub-title "Income Tax"; and to add two new sub-
sections to Section 224 of Article 81 and a new Section to
said Article of the Annotated Code of Maryland (1947
Supp. ), title "Revenue and Taxes", sub-title "Income Tax",
said new sub-sections to be known respectively as sub-sec-
tions (d-1) and (s) and to follow immediately after sub-
section (d) and sub-section (r) of said Section, respectively,
and said new Section to be known as Section 224A, and to
follow immediately after Section 224 of said Article, amend-
ing generally the income tax by re-defining "Investment In-
come" and "Gross Income", providing for additional deduc-
tions from gross income, and re-defining existing deductions
and "Net Income", altering the rate of tax, excusing persons
killed in the service of the United Nations from unpaid tax
liability, relating to the apportionment of corporate income,
and providing for an optional standard deduction from gross
income for individuals.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That sub-section (n) of Section 222; Section 223; sub-
section (f) of Section 224; sub-section (j)(1) of Section 224;
sub-section (m) of Section 224; Section 227; sub-section (c) of
Section 230, as said sub-section (c) of Section 230 was
amended by Chapter 2 of the Acts of the General Assembly of
1949; Section 246B; and sub-section (b) of Section 253 of
Article 81 of the Annotated Code of Maryland (1947 Supp. ),
title "Revenue and Taxes", sub-title "Income Tax", be and they
are hereby repealed and re-enacted, with amendments, to read
as follows:

222.

(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 busineses BUSINESS on (1) loans made
under the provisions of Article 58A of the Annotated Code of
Maryland, (2) business accounts and notes receivable, or (3)
installment contracts; nor shall it include the proceeds of a
pension or other deferred compensation plan set up by an
employer for an employee, ALTHOUGH A PORTION OF
SUCH PROCEEDS BE OTHERWISE TAXABLE AS PRO-
CEEDS OF AN ANNUITY.

223. Gross Income and Exclusions Therefrom. "Gross in-
come" means income from whatever source derived, including
salaries, wages or compensation for personal services of what-
ever kind and in whatever form paid; alimony received, in-
terest, dividends, rents, royalties and annuity income; and