SPIRO T. AGNEW, Governor                         187

not less than twenty (20) per cent of the State income tax
liability before application of the credit provided in Section 288 (g) of
each taxpayer, resident in that county or Baltimore City. In the event
such levy produces for any subdivision an amount less than would
have been realized by a return of 0.68 per cent of all ordinary
income and 1.7 per cent of all income previously taxable as invest-
ment income, as estimated by the Comptroller, the Comptroller shall
pay such difference to the subdivision.

(b)    Every individual resident of Maryland making an income tax
return under this subtitle shall be required to state on the tax return
form furnished by the Comptroller the name of the county and the
name of the incorporated municipality in which he resides.

(c)    The remainder of the taxes collected shall be paid into the
general treasury of the State and distributed therefrom, in the
manner and for the purposes set forth in the budget.

[(d) Beginning with the fiscal year ending June 30, 1957, and
thereafter, the amount to be distributed hereunder shall be paid
from income taxes collected during such fiscal year and such dis-
tribution shall be computed on the taxable income of individuals
in returns filed by them during such fiscal year and on which the
tax due has been paid except to the extent that such taxes shall
have been previously distributed.]

[(d-1) Beginning with the fiscal year ending June 30, 1964, and
thereafter, the Comptroller is authorized in his discretion upon the
request of the governing fiscal body of any incorporated municipality,
the several counties and the City of Baltimore, to make a second
distribution of income tax receipts. In exercising the discretion con-
ferred hereby, the Comptroller shall take into consideration the
revenue needs of the municipal corporation, the county or Baltimore
City making the request as well as the financial condition of the
State. The Comptroller may by regulation prescribe the form of the
request and determine what is the governing fiscal body of any
municipal corporation, county or the City of Baltimore making a
request hereunder. The second amount to be distributed hereunder
shall be paid from withholding receipts and estimated tax payments
collected for the quarters ending June 30 and September 30 of the
year of such distribution, and such distribution shall be computed
on the basis of an estimate by the Comptroller of the amount of
such collections payable hereunder. In making such estimate, the
Comptroller shall determine the percentages of the total amounts
of collections found due to the counties and cities of this State
based upon the final returns of taxpayers for the preceding fiscal
year and shall apply such percentages to such collections to be
distributed, after first deducting therefrom a sufficient reserve
(i) for the payment of refunds due and to become due to taxpayers
and (ii) to protect the State in a final accounting when the actual
amounts payable to each county and city may be determined.]

[(e)] (d) The Comptroller is directed to maintain sufficient reserves
at the close of each fiscal year for the payment of the political
subdivisions' share of income taxes collected on tax returns filed by
individuals by the close of the fiscal year and the payment of refunds
due the taxpayers.

[(f) The Comptroller is directed to maintain no reserves at the
close of the fiscal year from withholding receipts or estimated tax