1058                            LAWS OF MARYLAND                      [CH. 726

Sec. 2. And be it further enacted, That this Act shall take effect
June 1, 1965.

Approved May 4, 1965.

CHAPTER 726
(Senate Bill 526)

AN ACT to add new sub-section (d) to Section 136 of Article 81 of
the Annotated Code of Maryland (1957 Edition), title "Revenue
and Taxes", sub-title "Insurance Taxes", to follow immediately
after sub-section (c) of said section, providing for alternative
methods of reporting for premium tax purposes certain Deposit
Administration Annuity considerations received by life insurers.

Section 1. Be it enacted by the General Assembly of Maryland,
That new sub-section (d) be and it is hereby added to Section 136
of Article 81 of the Annotated Code of Maryland (1957 Edition),
title "Revenue and Taxes", sub-title "Insurance Taxes", to follow im-
mediately after Section 136 (c) thereof, and to read as follows:

136.

(d) Funds accepted by a life insurer under a group contract which
provides for an accumulation of funds to purchase annuities at future
dates may be considered as "gross premiums written" either upon
receipt or upon the actual application of such funds to the purchase
of annuities. However, any interest credited to funds accumulated
while under the latter alternative shall also be included in "gross
premiums written", and any funds taxed upon receipt, including any
interest later credited thereto, shall not be subject to taxation upon
the purchase of annuities. Each life insurer shall signify on its prem-
ium tax return covering premiums for the calendar year 1964 its
election between such two alternatives. Thereafter an insurer shall
not change such election without the consent of the Commissioner.
Any such funds taxed as "gross premiums" shall, in the event of
withdrawal of the funds before their actual application to the pur-
chase of annuities, be eligible to be included as "returned premiums"
if eligible therefor under the provisions of sub-section (b) of this
section.

Sec. 2. And be it further enacted, That this Act is hereby de-
clared to be an emergency measure and necessary for the immediate
preservation of the public health and safety, and having been passed
by a yea and nay vote supported by three-fifths of the members
elected to each of the two Houses of the General Assembly, the same
shall take effect from the date of its passage.

Approved May 4, 1965.