SPIRO T. AGNEW, Governor                      1325

TAL GAINS AND LOSSES FROM SALES OF TANGIBLE PER-
SONAL PROPERTY ARE ALLOCABLE TO THIS STATE IF:
(A) THE PROPERTY HAD A SITUS IN THIS STATE AT THE
TIME OF THE SALE; OR, (B) THE TAXPAYER'S COMMER-
CIAL DOMICILE IS IN THIS STATE AND THE TAXPAYER IS
NOT TAXABLE IN THE STATE IN WHICH THE PROPERTY
HAD A SITUS. 3. CAPITAL GAINS AND LOSSES FROM SALES
OF INTANGIBLE PERSONAL PROPERTY ARE ALLOCABLE
TO THIS STATE IF THE TAXPAYER'S COMMERCIAL DOMI-
CILE IS IN THIS STATE.

(b) (C) The remaining net income, hereinafter referred to as
business income, shall be allocated to this State if the trade or busi-
ness of the corporation is carried on wholly within this State, but if
the trade or business of the corporation is carried on partly within
and partly without this State so much of the business income of
the corporation as is derived from or reasonably attributable to the
trade or business of the corporation carried on within this State,
shall be allocated to this State and any balance of the business in-
come shall be allocated outside this State. The portion of the business
income derived from or reasonably attributable to the trade or
business carried on within this State may be determined by separate
accounting where practicable, but never in the case of a unitary
business; however, where separate accounting is neither allowable
nor practicable the portion of the business income of the corpora-
tion allowable to this State shall be determined in accordance with
a three-factor formula of property, payroll and sales, in which each
factor shall be given equal weight and in which the property factor
shall include rented as well as owned property and tangible per-
sonal property having a permanent situs within this State and used
in the trade or business shall be included as well as real property.
The Comptroller of the treasury shall have the right, in those cases
where circumstances warrant, to alter any of the above rules as to
the use of the separate accounting method or the formula method,
the weight to be given the various factors in the formula, the manner
of valuation of rented property included in the property factor and
the determination of the extent to which tangible personal property
is permanently located within the State.]

The Comptroller of the Treasury under the general power to ad-

minister this subtitle, conferred upon him by Section 304, shall

promulgate) such regulations as are necessary to allocate the net

income as defined by Section 280A of every corporation (domestic

or foreign) doing business within and without this State so as to

apportion to Maryland that portion of the corporate net income (1)
which is derived from or reasonably attributable to the trade or

business of the corporation carried on within this State, (2) which

is derived from tangible property, real or personal, located in this

State, and (3) capital gains and losses realized from the sale or
exchange of property, real or personal, tangible or intangible, of
corporations with either a commercial domicile in this State or the
property sold had a situs in this State.

Sec. 2. And be it further enacted, That all provisions of this
Act, being clarification of the intent of Chapter 142, Acts of 1967,
or of prior law shall apply to all taxable years ending after December
31, 1966.