J. MILLARD TAWES, Governor                      283

CHAPTER 87
(Senate Bill 19)

AN ACT to repeal and re-enact, with amendments, Section 279(j) of
Article 81 of the Annotated Code of Maryland (1963 Supplement),
title "Revenue and Taxes", subtitle "Income Tax", to permit an
election by taxpayers under the income tax laws on reporting as
dividends certain distributions on corporate stock.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 279(j) of Article 81 of the Annotated Code of Mary-
land, (1963 Supplement), title "Revenue and Taxes", subtitle "In-
come Tax", be and it is hereby repealed and re-enacted, with amend-
ments, to read as follows:

279.

(j) "Dividend" means any distribution made by a corporation
(domestic or foreign) out of its net profits, whenever earned, to its
stockholders or members, whether such distribution be made in cash
or other property, except stock of the same class in the corporation.
Amounts paid in liquidation or dissolution of a corporation shall be
treated as dividends to the extent that they represent earnings of the
corporation. On stock held for more than twelve months, the stock-
holder may elect to report as dividends, the distribution as is in excess
of the bona fide purchase price or estate value of the stock when it
was acquired.

The term "Dividend", however, does not mean or include a distri-
bution of stock made pursuant to an order enforcing the federal anti-
trust laws, provided that such distribution also qualifies for the re-
lief provisions contained in Section 1111 of the Federal Internal
Revenue Code of 1954 as enacted by Public Law 87-403 (H. R. 8847),
87th Congress, 2nd Session, and as amended from time to time. Any
such stock distribution, for the purpose of this subtitle, shall be re-
garded as a transaction under Section 280(a) of this subtitle.

Sec. 2. And be it further enacted, That this Act shall take effect
June 1, 1964.

Approved April 7, 1964.

CHAPTER 88
(Senate Bill 36)

AN ACT to repeal Sections 8 through 46, inclusive, of Article 46 of
the Annotated Code of Maryland (1957 Edition), title "Inherit-
ance", subtitles respectively, "Division and Election-Partition",
"Election", and "Sales by Commissioners", generally to repeal ob-
solete provisions of law relating to the partition of the property of
a person dying intestate.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 8 through 46, inclusive, of Article 46 of the Annotated