2228

LAWS OF MARYLAND

Ch. 810

or disabilities arising out of and in the course of their
employment as policemen or firemen; [(4)] (3) for all
taxable years ending after December 31, 1972, amounts
received by an individual who has attained the age of 65
years before the close of the taxable year as an annuity,
pension, or endowment under a private, municipal, State
or federal employee 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 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)] (4) in the case of persons retired
prior to January 1, 1967, payments received which
represent uncovered 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) ] (5) 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 of any
other state; [and (7)] (6) 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)] (7) 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 6 5 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 the
provisions of this Act are applicable to all taxable
years of individual taxpayers beginning after December
31, 1975.