SPIRO T. AGNEW, Governor                      1321

CHAPTER 656
(House Bill 260)

AN ACT to add new Section 279(m) to Article 81 of the Annotated
Code of Maryland (1967 Supplement), title "Revenue and Taxes,"
subtitle "Income Tax," to follow immediately after Section 279(1)
thereof, and to repeal and re-enact, with amendments, Sections
280(a), 280(b), 280(c), 280A, 281(A), and 283(a) of said Article,
title, and subtitle, and to repeal Section 313(a) of said Article,
(1967 Supplement), title, and subtitle, and to repeal Section 316
of said Article, (1965 Replacement Volume), title, and subtitle,
and enact new Section 316 to stand in the place of the section
repealed, providing generally for the determination of taxable
net income of individuals and net income of corporations, effec-
tive for taxable years ending after December 31, 1966, by clarify-
ing the reference to the laws of the United States, the modifica-
tions with respect to the net operating loss deduction, the modi-
fications with respect to income and distributions from Sub-
chapter "S" corporations, the modifications with respect to long-
term capital gain income, and the modification for refunds of
State and local income taxes, and by eliminating a superfluous
provision for determination of the income tax of beneficiaries,
defining "resident" and providing generally for the determination
of resident status for purposes of local income tax effective for
taxable years ending after December 31, 1966; and revising and
providing generally for the allocation of corporate net income to
this State, including definitions and promulgation of regulations
by the Comptroller; and declaring this Act to be an emergency
measure.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Section 279 (m) be and it is hereby added to Article 81
of the Annotated Code of Maryland (1967 Supplement), title "Rev-
enue and Taxes," subtitle "Income Tax," to follow immediately after
Section 279(1) thereof; and Sections 280(a), 280(b), 280(c), 280A,
281 (A), and 283 of said Article (1967 Supplement), title, and subtitle,
be and they are hereby repealed and re-enacted, with amendments,
and Section 313(a) of said Article (1967 Supplement), title, and
subtitle be and it is hereby repealed, and Section 316 of said Article
(1965 Replacement Volume) be and it is hereby repealed, and new
Section 316 enacted to stand in the place of the section repealed,
and all to read as follows:

ARTICLE 81
REVENUE AND TAXES
279.

(m) "Commercial domicile" means the principal place from
which the trade or business of the taxpayer is directed or managed.

280.

(a) The taxable net income of an individual taxpayer of this
State shall be that taxpayer's federal adjusted gross income as de-
fined in the laws of the United States, as amended from time to time