170                                 LAWS OF MARYLAND                          [CH. 41

288.

(C-1) THERE IS HEREBY ANNUALLY LEVIED AND IM-
POSED FOR EACH YEAR BEGINNING AFTER DECEMBER
31,1957, 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 AT
THE RATE OF THREE PER CENT. (3%) OF THE FIRST
$500.00 OF THE NET INVESTMENT INCOME SUBJECT TO
THE TAX IMPOSED BY THIS SUB-TITLE AND AT THE RATE
OF FIVE PER CENT. (5%) ON THE BALANCE OF THE NET
INVESTMENT INCOME SUBJECT TO THE TAX IMPOSED
BY THIS SUB-TITLE AND AT THE RATE OF THREE PER
CENT. (3%) ON THE BALANCE, IF ANY, OF THE TAXABLE
NET INCOME.

(J) IF THE TAXPAYER'S TAXABLE YEAR IS FISCAL
YEAR ENDING IN 1958. SUCH TAXPAYER SHALL COMPUTE
HIS TAX LIABILITY AS PRESCRIBED IN THIS SECTION IN
THE FOLLOWING MANNER: A TAX SHALL FIRST BE COM-
PUTED ACCORDING TO THE RATES APPLICABLE TO THE
CALENDAR YEAR 1957. A TENTATIVE TAX SHALL THEN
BE COMPUTED ACCORDING TO THE RATES APPLICABLE
TO THE CALENDAR YEAR 1958, AND THE DIFFERENCE
BETWEEN THE TAX AND THE TENTATIVE TAX SHALL
BE DETERMINED. SUCH TAXPAYER'S LIABILITY UNDER
THIS SECTION SHALL BE THE SUM OF (A) THE TAX AS
COMPUTED ACCORDING TO THE RATES APPLICABLE TO
THE CALENDAR YEAR 1957, AND (B) THAT PROPORTION
OF THE DIFFERENCE BETWEEN THE TAX AND THE
TENTATIVE TAX, AS DEFINED ABOVE, AS THE NUMBER
OF MONTHS IN THE TAXPAYER'S FISCAL YEAR OR
PERIOD WHICH FALL IN THE CALENDAR YEAR 1958 BEARS
TO THE WHOLE NUMBER OF MONTHS OF SUCH FISCAL
YEAR OR PERIOD. THIS SUB-SECTION SHALL BE INAPPLI-
CABLE FOR THE CALCULATION OF ANY TAX ON ANY RE-
TURN FILED WHICH COVERS A FISCAL YEAR OR PERIOD
ENDING AFTER DECEMBER 31, 1958.

SEC. 2. AND BE IT FURTHER ENACTED, THAT TWO NEW
SUB-SECTIONS BE AND THEY ARE HEREBY ADDED TO
SECTION 289 OF SAID ARTICLE AND SUB-TITLE, SAID NEW
SUB-SECTIONS TO BE KNOWN AS SUB-SECTIONS (F-l) AND
(F-2), AND TO FOLLOW IMMEDIATELY AFTER SUB-SEC-
TION (F) THEREOF AND BOTH TO READ AS FOLLOWS:

289.

(F) IN LIEU OF THE REGULAR METHOD OF COMPUTA-
TION PROVIDED BY THIS SUB-TITLE, AND THE PAYMENT
OF THE TAX IMPOSED BY SECTION 288 (C-l) OF THIS SUB-
TITLE, AN INDIVIDUAL REPORTING ON A CASH BASIS FOR
ANY TAXABLE YEAR, BEGINNING AFTER DECEMBER 31,
1957, MAY ELECT TO PAY THE TAX AS SHOWN IN THE
FOLLOWING TABLE, IF HIS GROSS INCOME FOR THE TAX-
ABLE YEAR IS TEN THOUSAND DOLLARS ($10,000.00) OR
LESS, AND CONSISTS ONLY OF ONE OR MORE OF THE