936                               LAWS OF MARYLAND                        [CH. 572

to follow immediately after Section 277 (q) thereof, relating to
the deduction allowable on the State Income Tax for certain
expenses of medical care for all calendar years beginning after
December 31, 1954.

SECTION 1. Be it enacted by the General Assembly of Maryland,
That Section 277 (q-1) be and it is hereby added to Article 81 of
the Annotated Code of Maryland (1951 Edition and 1954 Supple-
ment), title "Revenue and Taxes", sub-title "Income Tax", said new
section to follow immediately after Section 277 (q) thereof and to
read as follows:

277.

(q-1) for all calendar years beginning after December 31,
1954, expenses paid during the taxable year, not compensated for
by insurance or otherwise, for medical care of the taxpayer, his
spouse or dependents as defined in Section 281 (b). The term
"medical care" shall include amounts paid for the diagnosis, cu/re,
mitigation, treatment or prevention of disease or for the purpose
of affecting any structure or function of the body (including
amounts paid for accident or health insurance); provided, however,
that a taxpayer may deduct only such expenses as exceed three per-
centum of his net GROSS income or three percentum of the aggre-
gate net GROSS income in the case of husband and wife, computed
without the benefit of this section, and PROVIDED, FURTHER,
HOWEVER, THAT IN COMPUTING THE MEDICAL EXPENSE,
AN AMOUNT EQUAL TO ONE PERCENTUM (1%) OF THE
GROSS INCOME OR THE COMBINED GROSS INCOME OF
HUSBAND AND WIFE SHALL FIRST BE DEDUCTED FROM
THE AGGREGATE AMOUNT EXPENDED FOR DRUGS AND
MEDICINE; that the maximum deduction for the taxable year shall
not exceed $5,000.00 $2,500.00 in the case of husband and wife or
head of a family or $2,500.00 $1,250.00 in the case of all other such
individuals, except, however, that if the taxpayer or his spouse has
attained the age of 65 before the close of the taxable year, the full
amount of medical expenses paid may be deducted without regard
to the 3% limitation, but subject, nevertheless, to the maximum
sum of $5,000.00 $2,500.00 in the case of husband and wife or head
of a family and the sum of $2,500.00 $1,250.00 in the case of all
other individuals.

Sec, 2. And be it further enacted, That this Act shall take effect
June 1, 1955.

Approved April 25, 1955.

CHAPTER 572
(Senate Bill 266)

AN ACT to repeal and re-enact, with amendments, Section 653 (k)
of Article 66C of the Annotated Code of Maryland (1951 Edition),

EXPLANATION: Italics indicate new matter added to existing law.
[Brackets] indicate matter stricken from existing law.
CAPITALS indicate amendments to bill.
Strike out indicates matter stricken out of bill.