216                                          LAWS OF MARYLAND                          [Ch. 11

PARAGRAPHS OF THIS SECTION SHALL BE APPORTIONED ON A
YEARLY BASIS IN ACCORDANCE WITH THIS PARAGRAPH WHETHER OR
NOT ANY NATURAL RESOURCE WAS BEING TAKEN FROM THE LAND AT
THE TIME THE TRUST WAS ESTABLISHED. TWENTY-TWO PERCENT
OF THE GROSS RECEIPTS (BUT NOT TO EXCEED 50% OF THE NET
RECEIPTS REMAINING AFTER PAYMENT OF ALL EXPENSES, DIRECT
AND INDIRECT, COMPUTED WITHOUT ALLOWANCE FOR DEPLETION)
SHALL BE ADDED TO PRINCIPAL AS AN ALLOWANCE FOR
DEPLETION. THE BALANCE OF THE GROSS RECEIPTS, AFTER
PAYMENT THEREFROM OF ALL EXPENSES, DIRECT AND INDIRECT,
IS INCOME.

(E) IF A TRUSTEE, ON JULY 1, 1965, HELD AN ITEM OF
DEPLETABLE PROPERTY OF A TYPE SPECIFIED IN THIS SECTION
HE SHALL ALLOCATE RECEIPTS FROM THE PROPERTY IN THE
MANNER USED BEFORE THE EFFECTIVE DATE OF THIS SUBTITLE,
BUT AS TO ALL DEPLETABLE PROPERTY ACQUIRED AFTER THE
EFFECTIVE DATE OF THIS SUBTITLE BY AN EXISTING OR NEW
TRUST, THE METHOD OF ALLOCATION PROVIDED HEREIN SHALL BE
USED.

(C) THIS SECTION DOES NOT APPLY TO TIMBER, WATER,
SOIL, SOD, DIRT, TURF, OR MOSSES.

14-209. PROPERTY SUBJECT TO DEPLETION.

EXCEPT AS PROVIDED IN §14-208, IF THE PRINCIPAL
CONSISTS OF PROPERTY SUBJECT TO DEPLETION, INCLUDING
LEASEHOLDS (EXCEPT THOSE SUBJECT TO GROUND RENTS
RENEWABLE FOREVER), PATENTS, COPYRIGHTS, ROYALTY RIGHTS,
AND RIGHTS TO RECEIVE PAYMENTS ON A CONTRACT FOR DEFERRED
COMPENSATION, RECEIPTS FROM THE PROPERTY, NOT IN EXCESS
OF 5% PER YEAR OF ITS INVENTORY VALUE, ARE INCOME, AND
THE BALANCE IS PRINCIPAL.

14-210. CHARGES AGAINST INCOME AND PRINCIPAL; CHARGES OF
UNUSUAL AMOUNT AGAINST INCOME; REGULARLY RECURRING
CHARGES PAYABLE FROM INCOME.

(A) THE FOLLOWING CHARGES SHALL BE MADE AGAINST
INCOME:

(1)    ORDINARY EXPENSES INCURRED IN CONNECTION
WITH THE ADMINISTRATION, MANAGEMENT, OR PRESERVATION OF
THE TRUST PROPERTY, INCLUDING REGULARLY RECURRING TAXES
ASSESSED AGAINST ANY PORTION OF THE PRINCIPAL, WATER
RATES, PREMIUMS ON INSURANCE TAKEN UPON THE INTERESTS OF
THE INCOME BENEFICIARY, REMAINDERMAN, OR TRUSTEE,
INTEREST PAID BY THE TRUSTEE, GROUND RENTS, AND ORDINARY
REPAIRS;

(2)   A REASONABLE ALLOWANCE FOR DEPRECIATION
ON PROPERTY SUBJECT TO DEPRECIATION UNDER GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES, BUT NO ALLOWANCE SHALL BE