278                             LAWS OF MARYLAND                     [CH. 104

fiscal year as defined in Section 279 (h) of this Article,] fiscal year
of the State beginning after June 30, 1968, upon every domestic
financial institution for the privilege of existing as a corporation
during any part of [its taxable] the State's fiscal year, and upon
every financial institution organized under the laws of the United
States or another state or nation for the grant to it of the privilege
in corporate or organized form of transacting or for the actual
transaction by it of any business within this State during any part
of [its taxable] the State's fiscal year [, in corporate or organized
form]. "Financial institution" as used in this subtitle shall include
all commercial banks, safe deposit and trust companies, and finance
corporations as defined in Section 2 (9) of this Article [;] but shall
not include domestic or foreign finance corporations which make
loans exclusively to farmers for agricultural purposes or any cor-
poration licensed under the Small Business Investment Act of 1958,
as amended (15 USCA 661 et seq., as amended).

(b)  The tax imposed by this subtitle shall be measured by the
net earnings of such financial institution for the taxpayer's annual
accounting period, whether calendar year or fiscal year as defined
in Section 279 (h) of this Article, ending within the fiscal year of
the State for which the tax is imposed. For the fiscal year of the
State ending June 30, 1969, the tax shall be measured by only those
net earnings of the financial institution as are for the period after
December 31, 1967. "Net earnings" for purposes of this subtitle
shall mean the net income of such financial institution for [the tax-
able year] its annual accounting period ending within the fiscal year
of the State for which the tax is imposed, determined in accordance
with the provisions of Section 280A of this Article, allocable to this
State under the provisions of [Section 316] subsection (e) of this
section; provided, however, that the financial institution shall include
in its income interest upon obligations of the United States, of any
state including Maryland, of any county, municipal or public cor-
poration, authority, special district, or political subdivision of any
state including Maryland, and of the respective instrumentalities
thereof, and shall further include in its income, Section 280A (c)
(4) of this Article notwithstanding, all other interest and dividends
to the extent included in its taxable income as defined in the laws of
the United States, as amended from time to time and in effect for
the corresponding taxable year.

(c)  The rate of tax shall be seven per cent (7%) of net earnings
allocable to this State under the provisions of (Section 316] sub-
section (e) of this section and of this subtitle.

(d)  Every financial institution shall file [a report of its net
earnings] with the