178                             LAWS OF MARYLAND                       [CH. 142

nonbusiness contributions, medical expenses, alimony and losses to
the extent provided in Section 281 (e) of this subtitle] itemized
deductions provided for in Section 281. The standard deduction
herein provided for shall not be in lieu of the deductions [pro-
vided in Section 281 of this subtitle to the extent paid or incurred
in carrying on a trade or business, including traveling expenses
deductible in subsection(s) of Section 281 and expenses, including
losses paid or incurred in the acquisition of or care of income-
producing property to the extent under subsections (e) and (m) of
Section 281] permitted under federal law in arriving at adjusted
gross income. The standard deduction provided for by this section
shall be in an amount equal to ten per cent (10%) of the gross in-
come of the taxpayer as computed in accordance with the provisions
of this subtitle but in no event shall the standard deduction exceed
five hundred dollars ($500.00). In the case of husband and wife
filing a joint return, said return for the purposes of this section,
shall be considered the return of two taxpayers; however, the stand-
ard deduction provided for in this section shall not be allowed to
either if the net income of one of the spouses is determined without
regard to such standard deduction or without regard to Section 289
hereof, anything to the contrary in said Section 289 notwithstanding.

(a)    The county council or board of county commissioners of
any county and the Mayor and City Council of Baltimore, by ordi-
nance or resolution enacted pursuant to their ordinary and regular
legislative procedure, may adopt, by reference, a local income tax
imposed upon the residents of any county or Baltimore City as a
percentage of the liability of such resident for State income tax.
Any income tax so adopted may not be more than fifty (50) per cent
of the State income tax liability of such resident, and any such
tax imposed, and any increase or decrease in any tax so imposed,
shall be in increments of five (5) per cent.

(b)    Any county or Baltimore City enacting a local income tax
pursuant to this section shall certify to the Comptroller of the
Treasury on or before July 1st of any year the date of adoption
of the ordinance or resolution imposing the tax and the rate of the
tax for such calendar year. The effective date of any tax imposed
pursuant to this section shall be January 1 of any calendar year,
and no such tax so imposed shall be repealed or the rate changed
effective on any date other than December 31 of any calendar year.

(c)    Any local income tax imposed under the provisions of this
section shall be administered by the Comptroller of the Treasury
who shall collect and account for the revenue, crediting all such
funds to a local income tax fund hereby established in the State
Treasury. LOCAL INCOME TAXES IMPOSED PURSUANT TO
THIS SECTION SHALL BE SUBJECT TO THE PROVISIONS OF
SECTION 312 OF THIS SUBTITLE RELATING GENERALLY TO
WITHHOLDING AT THE SOURCE, DECLARATION OF ESTI-
MATED TAX DUE, AND REMITTANCES THEREOF TO THE
COMPTROLLER.

After deducting the cost of any refunds and the pro-rated share
of the cost of operating the Income Tax Division, the Comptroller
shall pay over the balance to the appropriate local fiscal authority.

283.