MARVIN MANDEL, Governor                           33

Approved May 15, 1975.

CHAPTER 2
(Senate Bill 2)

AN ACT concerning

State Aid for Police Protection Fund —

Increase Aid, Inheritance Tax — Tax on

Collaterals, Income Tax — Definition of

Net Income, Individual Income Tax -

Advancement of Collection of Withholding,

and Cigarette Tax — Increase in Pate

FOR the purpose of increasing the aid to certain
subdivisions by changing per capita amounts;
adjusting population densities and percent of
population in municipalities and increasing the
minimum guarantee and providing an incentive grant
and providing a supplemental grant; providing a
certain inheritance tax rate on every certain amount
of clear value of property having a taxable situs in
this State; deleting from modifications made with
respect to the net income of a corporation (1) the
subtraction of 50 percent of the excess of net
long-term capital gain over short—term capital loss
and (2) the addition of the net operating loss
deduction as defined in Section 172 of the Internal
Revenue Code; deleting from the modifications made
with respect to the net income of an individual
taxpayer the addition of the net operating loss as
defined in Section 172 of the Internal Revenue Code;
changing the date for filing quarterly payments of
income taxes withheld by employers; increasing the
tax on cigarettes; changing the discount and method
of distributing the revenues from the tax on
cigarettes; providing for an appropriation for the
1975 — 1976 fiscal year of the funds necessary for
the increased State Aid for Police Protection; and
relating generally to increasing State Aid for
Police Protection through imposing an increase in
the tax on certain inheritances, adjustments in the
definition of net income, advancement of collection
of certain withholding taxes, and an increase in the
tax on cigarettes.

BY repealing and re—enacting, with amendments,

Article 15A — Budget and Fiscal Planning