SPIRO T. AGNEW, Governor                          11

CHAPTER 10
(Senate Bill 61)

AN ACT to repeal and re-enact, with amendments, Sections 279 (1),
288 (c), and 323 (e) (2) of Article 81 of the Annotated Code of
Maryland (1965 Replacement Volume and 1967 Supplement), title
"Revenue and Taxes," subtitle "Income Tax," amending the tax-
ation laws in order to correct mispunctuation, erroneous refer-
ences, and erroneous wording.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 279 (1), 288 (c), and 323 (e) (2) of Article 81 of the
Annotated Code of Maryland (1965 Replacement Volume and 1967
Supplement), title "Revenue and Taxes," subtitle "Income Tax," be
and they are hereby repealed and re-enacted, with amendments, to
read as follows:

279.

(1) The terms "domestic and foreign" when used herein and
applied to corporate entities shall mean in the case of "domestic," a
corporation organized and existing under the laws of Maryland and
in the case of "foreign" shall mean a corporation organized and
existing under the laws of other states and governments.

288.

(c) In addition to the tax imposed elsewhere in this subtitle upon
the net income of every corporation (domestic or foreign), there is
hereby annually levied and imposed, beginning as of July 1, 1956,
a tax on the net income of every corporation (domestic or foreign)
at the rate of one half of one percent (½%), and beginning as of
July 1, 1967 in addition to this tax an additional tax of one quarter
of one percent (¼%) of such portion thereof as is allocable to this
State under the provisions of Section 316 hereof, except as herein
specifically provided otherwise, the tax imposed by this subsection
shall in all respects be imposed and collected and subject to the same
laws, regulations and provisions as those imposed elsewhere in this
article upon the net income of such corporations. If the taxpayer
is on a calendar year basis, the increase in rate over that formerly
levied and imposed shall be paid upon net income for the last six
months of the years 1956 and/or 1967, as the case may be, deter-
mined by a pro rata computation against net income for the entire
years of 1956 and/or 1967, as the case may be. If the taxpayer is on
a fiscal year basis, the increase in rate over that formerly levied and
imposed shall be paid upon net income for such part of any fiscal
year which follows July 1, 1956 and/or July 1, 1967, as the case may
be, determined by a pro rata computation against net income for
the entire fiscal year. The tax imposed and collected pursuant to the
provisions of this subsection shall be remitted by the Comptroller
to the State Treasurer. The State Treasurer shall first set aside
in the Annuity Bond Fund so much, if any, as shall be required to
make payments of principal and interest due in the year of receipt
and in the next following year, to the extent that such amounts have
not previously been so set aside on the bonds or certificates of
indebtedness issued under provisions of Section 8 of Article 62B
of the Annotated Code of Maryland (1957 Edition, as amended),