SPIRO T. AGNEW, Governor                        177

JECT TO GROSS RECEIPTS TAXES IMPOSED BY THIS ARTI-
CLE (LESS RELATED EXPENSES) OF RAILROADS, OTHER
PUBLIC UTILITIES AND CONTRACT CARRIERS; (2) FIFTY
(50) PER CENT OF THE LONG-TERM CAPITAL GAINS RE-
SULTING FROM THE SALE OR OTHER DISPOSITION OF ANY
CAPITAL ASSET AND ANY PROPERTY COMMONLY RE-
FERRED TO AS SECTION 1231 ASSETS AS DEFINED IN THE
LAWS OF THE UNITED STATES; (3) THE AMOUNT OF ANY
REFUNDS OF INCOME TAXES PAID TO THE STATE OF
MARYLAND, ANY OTHER STATE, THE DISTRICT OF COLUM-
BIA, AND ANY POLITICAL SUBDIVISION OF THE STATE OF
MARYLAND AND ANY OTHER STATE; AND (4) DIVIDEND
INCOME TO THE EXTENT INCLUDED IN TAXABLE INCOME
AND ANY INTEREST INCOME OTHER THAN INTEREST
EARNED IN THE CONDUCT OF A BUSINESS, ON LOANS
MADE UNDER THE PROVISIONS OF ARTICLE 58A OF THIS
CODE, AND INTEREST EARNED ON BUSINESS ACCOUNTS,
NOTES RECEIVABLE AND INSTALLMENT CONTRACTS.

281.

(a)    If a resident individual has itemized his deductions from
adjusted gross income in determining his federal taxable income, he
may elect in determining his taxable income under this article to
deduct the sum of such itemized deductions (other than deductions for
personal exemptions):

(1) Reduced by any amount thereof representing income taxes
imposed by the State of Maryland, ANY POLITICAL SUBDIVISION
THEREOF, any other state or subdivision of any other state, and OR
the District of Columbia; and (2) Increased by the amount of any
refunds of income taxes paid to the State of Maryland, any other
State, the District of Columbia, and any political subdivision of the
State of Maryland and of any other State.

(b)    An individual resident in this State for less than a full
taxable year who itemizes his deductions shall include therein only
such portion of his deductions as are expended during his period of
residence in the State of Maryland.

(c)    A non-resident individual may claim deductions pursuant to
subsection (a) only to the extent that such deductions are properly
allocable to income taxable pursuant to this subtitle.

282.

For all calendar years beginning after December 31, 1950, and
for all fiscal years ending after said date, an individual, excluding,
however, fiduciaries to the extent included under subsection (e) and
defined under subsection (f) of Section 279 of this subtitle, shall be
allowed a standard deduction, which shall be allowed only if the
individual elects to claim it and the filing of a return by use of the
optional standard deduction herein provided shall constitute such
election and said return and method of filing shall be final and
irrevocable for the particular taxable year. Where the individual
elects to claim the optional standard deduction here provided, such
deduction shall be in lieu of all [nonbusiness ground rents and
interest paid or incurred, taxes, casualty losses, including theft,