J. MILLARD TAWES, Governor                         183

of the trust shall attach to the holders of beneficial interests in the
trust or to the trustees; provided, however, that nothing herein shall
relieve any trustee from liability to the trust or its security holders
to which he might otherwise be subject by reason of acts constituting
bad faith, wilful misfeasance, gross negligence or reckless disregard
of his duties.

Sec. 2. And be it further enacted, That a new Section 313A be
and the same is hereby added to Article 81 of said Code (1957
Edition), title "Revenue and Taxes," subtitle "Income Tax," to
follow immediately after Section 313 thereof, and to read as follows:

313A.

(a)  Any real estate investment trust doing business in this state
shall pay such fees, ordinary taxes and special taxes, with the ex-
ception of income taxes as provided hereafter in (b), and shall make
such tax reports as are required by the laws and ordinances of this
state and any counties and municipalities thereof on domestic and
foreign ordinary business corporations on an identical basis there-
with; provided, however, that the franchise tax on a domestic real
estate investment trust shall be $25 per year and that the filing fees
paid by such trusts shall be the same as the filing and recording fees
paid by domestic corporations. In computing taxes and fees the
certificates of beneficial interests of a real estate investment trust
shall have the character for tax purposes of shares of stock in a
private corporation.

(b)   The income tax imposed by this Article upon corporations
shall be imposed upon real estate investment trusts only with respect
to that part of the net income of the trust which has not been dis-
tributed; provided, that at least 90% of the taxable income of the
trust for the taxable year, without regard to its capital gain, is de-
clared and distributed to holders of shares or certificates
of beneficial interest within the taxable year or before the time
prescribed by law for the filing of its return for the taxable year
(including the period of any extension of time granted for filing
such return), otherwise all of the net income of the trust shall be
taxable; provided, further, that no real estate investment trust shall
enjoy the advantage of this section unless it complies with Sections
856-858 of the Federal Internal Revenue Code of 1954, as amended
from time to time, or such section or sections of any subsequent
Internal Revenue Code as may be applicable to any organization
described in Public Law 86-779.

(c)   The taxes and fees referred to in subsections (a) and (b)
of this section, and all increases, interests and penalties thereon,
shall be a lien upon the property of the real estate investment trust
from and after the time when notice has been given that such tax
has become due and payable as provided herein. Notice of such
Hens shall be filed by the Comptroller with the clerk of the circuit
court of the county in which said property is located, or if located
in Baltimore City, with the clerk of the Superior Court of Balti-
more City. Each clerk of court shall accurately and promptly record
and index all such notices of lien filed with him by the Comptroller by
entering such lien in the judgment docket of the court, stating
the name of the delinquent real estate investment trust, the amount