958

LAWS OF MARYLAND

Ch. 45

CHAPTER 45

(House Bill 849)

AN ACT concerning

Income Tax — Elderly

FOR the purpose of providing a certain subtraction from
federal adjusted gross income for State income tax
purposes of certain retirement benefits received by
certain disabled and elderly persons; providing for the
effective date of the Act; and generally relating to
the determination of the taxable net income of certain
elderly Maryland taxpayers.

BY repealing and reenacting, with amendments,

Article 81 - Revenue and Taxes

Section 280(c)

Annotated Code of Maryland

(1975 Replacement Volume and 1977 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 81 — Revenue and Taxes

280.

(c) There shall be subtracted from federal adjusted
gross income: (1) interest or dividends on obligations of
the United States and its territories and possessions or of
any authority, commission or instrumentality of the United
States and any other income to the extent includable in
gross income for federal income tax purposes, but exempt
from State income taxes under the laws of the United States;
(2) payments received by policemen and firemen from pension
systems for injuries or disabilities arising out of and in
the course of their employment as policemen or firemen; (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] MAXIMUM ANNUAL BENEFITS
PERMITTED FOR PERSONS WHO RETIRED AT THE AGE OF 65 OR OLDER
under the Social Security [and Railroad Retirement Acts] ACT
for the prior calendar year. The Comptroller shall
determine the amount of the [average] MAXIMUM benefit
annually and for the purposes of this subparagraph may allow
the subtraction to the nearest $100. The allowed