1592                                      LAWS OF MARYLAND                                 Ch. 760

individual's federal adjusted gross income, this subtraction [[not to exceed
[[[]]one[[]]] [[TWO]] thousand five hundred dollars [[]]] ($1,500.00) [[]]]
[[$2,500.00)]] less]] SHALL NOT EXCEED AN AMOUNT EQUAL TO THE
AVERAGE ANNUAL BENEFIT RECEIVED IN MARYLAND BY
PERSONS WHO RETIRED AT THE AGE OF 65 OR OLDER UNDER THE
SOCIAL SECURITY AND RAILROAD RETIREMENT ACTS FOR THE
PRIOR CALENDAR YEAR. THE COMPTROLLER SHALL DETERMINE
THE AMOUNT OF THE AVERAGE BENEFIT ANNUALLY AND FOR
THE PURPOSES OF THIS SUBPARAGRAPH MAY ALLOW THE
SUBTRACTION TO THE NEAREST $100. THE ALLOWED
SUBTRACTION SHALL BE REDUCED BY the amount of old age, survivors,
or disability benefits received under the Social Security Act, the Railroad
Retirement Act, or both, as the case may be; and (5) in the case of persons retired
prior to January 1, 1967, payments received which represent unrecovered
contributions to a retirement system over and above any amount of such
contributions remaining to be recovered tax free on the federal return, limited to
an amount which together with the amount of any tax-free exclusion in the federal
return does not exceed the exclusion which was permitted under the laws and
regulations of this State prior to the year 1967; and (6) to the extent included, the
amount of any refunds of income taxes paid to the State of Maryland, any other
state, the District of Columbia, and any political subdivision of the State of
Maryland and and of any other state; and (7) to the extent included, distributions
to beneficiaries of accumulated income on which income tax has been paid by a
fiduciary to this State [[.]]; AND (8) FOR ALL TAXABLE YEARS ENDING
AFTER DECEMBER 31, 1972, AMOUNTS RECEIVED BY AN
INDIVIDUAL WHO IS TOTALLY DISABLED, AS AN ANNUITY,
PENSION OR ENDOWMENT UNDER A PRIVATE, MUNICIPAL, STATE
OR FEDERAL RETIREMENT SYSTEM. AND INCLUDED IN SUCH
INDIVIDUAL'S FEDERAL ADJUSTED GROSS INCOME, THIS
SUBTRACTION SHALL NOT EXCEED AN AMOUNT EQUAL TO THE
AVERAGE ANNUAL BENEFIT RECEIVED IN MARYLAND BY
PERSONS WHO RETIRED AT THE AGE OF 65 OR OLDER UNDER THE
SOCIAL SECURITY AND RAILROAD RETIREMENT ACTS FOR THE
PRIOR CALENDAR YEAR. THE COMPTROLLER SHALL DETERMINE
THE AMOUNT OF THE AVERAGE BENEFIT ANNUALLY AND FOR
THE PURPOSES OF THIS SUBPARAGRAPH MAY ALLOW THE
SUBTRACTION TO THE NEAREST $100. THE ALLOWED
SUBTRACTION SHALL BE REDUCED BY THE AMOUNT OF
DISABILITY BENEFITS RECEIVED UNDER THE SOCIAL SECURITY
ACT, THE RAILROAD RETIREMENT ACT, OR BOTH, AS THE CASE
MAY BE.

SECTION 2. AND BE IT FURTHER ENACTED, That all provisions of this
Act shall apply to all taxable years ending after December 31, 1972.

SECTION [[2]] 3. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1973.

Approved May 24, 1973.