14                                 LAWS OF MARYLAND                           [CH. 6

288.

(c-1) There is hereby annually levied and imposed 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 sec-
tion in the following manner: A tax shall first be computed 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 appli-
cable to the calendar year 1957, and (b) that proportion of the differ-
ence 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 inapplicable for the
calculation of any tax on any return 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-1) and
(f-2), and to follow immediately after Sub-section (f) thereof and
both to read as follows:

289.

(f) In lieu of the regular method of computation provided by
this sub-title, and the payment of the tax imposed by Section 288
(c-1) 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
taxable year is Ten Thousand Dollars ($10,000.00) or less, and con-
sists only of one or more of the following: (1) salary; (2) wages; (3)
compensation for personal services; or (4) dividends, interest and
annuities not in excess of Five Hundred Dollars ($500.00) in the
aggregate.