HARRY HUGHES, Governor

2921

AN ACT concerning

Income Tax - Interest Exemption

FOR the purpose of excluding from taxable income, for State
income tax purposes, a certain amount of interest
received by individuals; with respect to any account

with a financial institution; and limiting the

excludable amounts provided by this Act up to a certain
amount and making this Act null and void under certain
circumstances.

BY repealing and reenacting with amendments,

Article 81 - Revenue and Taxes

Section 280(c)

Annotated Code or Maryland

(1975 Replacement Volume and 1979 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be repealed, amended, or enacted to read as follows: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 then 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 maximum
annual benefits permitted for persons who retired at the age
of 65 or older under the Social Security Act for the prior
calendar year The Comptroller shall determine the amount
of the maximum 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; (4) 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