784                             LAWS OF MARYLAND                       CH. 452

viduals from electing small business corporations, as defined in Sec-
tion 1371 of the Internal Revenue Code, which have complied with the
provisions of subchapter [,] "S" of the Internal Revenue Code; and
[(4)] (3) payments received by policemen and firemen from pen-
sion systems for injuries or disabilities arising out of and in the
course of their employment as policemen or firemen.

283.

(d) The Comptroller shall, as early as possible in 1968 and in
each year thereafter, certify to each county and Baltimore City (1)
his estimate of the State income tax to be collected from the residents
of each such county and Baltimore City during that year, and (2)
his estimate of the amounts required to be deducted from such
county or Baltimore City's share of State taxes pursuant to the provi-
sions of Section 225A of Article 77, Annotated Code of Maryland,
1965 Replacement Volume, relating to State loans for public school
construction. Each county and Baltimore City must levy, for 1968 and
subsequent years, a local income tax under this Section, at a rate not
less than the lesser of (1) twenty per cent (20%) of the State income
tax liability of each resident or (2) such exact multiple of five
per cent (5%) of the State income tax liability of each resident, as
will cause the amount collectible from such a levy by said county
or Baltimore City, under Section 283(c), 1967 Cumulative Supple-
ment, to equal or exceed the amount required to be deducted from
such county or Baltimore City's share of State taxes pursuant to
the provisions of Section 225A of Article 77, Annotated Code of
Maryland, relating to State loans for public school construction, as
the same may be amended from time to time.

285.

If any rate of tax imposed by this subtitle changes, and if the
taxable year of any taxpayer includes the effective date of the change
(unless that date is the first day of the taxable year), then, unless
otherwise provided in the act enacting the change—

(1)    tentative taxes shall be computed by applying the rate for
the period before the effective date of the change, and the rate for
the period on and after such date, to the taxable income for the
entire taxable year; and

(2)    the tax for such taxable year shall be the sum of that
proportion of each tentative tax which the number of days in each
period bears to the number of days in the entire taxable year. For
purposes of this section, repeal of a tax shall be considered a change
of rate, and the rate for the period after the repeal shall be zero.
This section applies to fiscal years of corporations ending in 1968
and to all rate changes hereafter enacted.

288.

(b) There is hereby annually levied and imposed for 1968 and
subsequent years [each year beginning after December 31, 1954],
a tax on the net income of every corporation (domestic or foreign)
at the rate of six and one-quarter per cent (6¼%) [four and
one-half per cent (4½%)] of such portion thereof as is allocable
to this State under the provisions of Section 316 hereof.