HARRY HUGHES, Governor                             3165

to and required by the State Department of Assessments and
Taxation. The said gross receipts taxes shall be due and
payable at the treasury on or before the first day of July
in each year.

(c) Every partnership or individual engaged in any of
the above enumerated branches of business in this State
shall be subject to the tax imposed by this section and
comply with all provisions relating thereto as if such firm
or individual were a corporation.]

THE FOLLOWING CLASSES OF FOREIGN OR DOMESTIC COMPANIES
DOING BUSINESS IN THIS STATE, AT THE FOLLOWING PERCENTAGE
RATES OF GROSS RECEIPTS:

(1)  TELEGRAPH, CABLE, EXPRESS, TRANSPORTATION,
(EXCLUDING RAILROAD), PARLOR CAR, OR SLEEPING CAR COMPANIES,
AT 2 1/2 PERCENT.

(2)  TELEPHONE, OIL PIPELINE, ELECTRIC LIGHT,
POWER, OR GAS COMPANIES, AT 2 PERCENT.

(B) A COMPANY SUBJECT TO GROSS RECEIPTS TAX SHALL
REPORT TO THE DEPARTMENT ANNUALLY THE LENGTH OF ITS LINES
WITHIN AND WITHOUT THIS STATE, OR OTHER INFORMATION WHICH
THE DEPARTMENT REQUIRES TO FAIRLY ALLOCATE THE PROPORTION OF
GROSS RECEIPTS DERIVED FROM THE COMPANY'S BUSINESS WITHIN
THIS STATE. GROSS RECEIPTS TAX IS DUE AND PAYABLE ON JULY 1
ANNUALLY. "COMPANY" INCLUDES A PARTNERSHIP OR INDIVIDUAL
ENGAGED IN AN ENUMERATED TYPE OF BUSINESS, FOR PURPOSES OF
THIS SECTION.

280A.

(c) There shall be subtracted from taxable income of
the taxpayer the following items to the extent included in
federal income: (1) operating revenue subject to gross
receipts taxes imposed by this article (less related
expenses) of [railroads, other] public utilities and
contract carriers; (2) 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 any other state; (3) interest income

on obligations of the United States and its

instrumentalities; (4) any amounts included therein by
operation of the provisions of § 78 of the Internal Revenue
Code of 1954; (5) dividends received from a corporation in
which the taxpayer owns, directly or indirectly, 50 percent
or more of the corporation's outstanding shares of capital
stock, and which is organized under the laws of a foreign
country, and (6) to the extent included, any profit realized
from the sale or exchange of bonds issued by this State or
its political subdivisions; and (7) to the extent that the
dividends are included in taxable income, the percentage of
dividends received from an affiliated domestic international
sales corporation (as defined by Internal Revenue Code of
1954 § 992(a)), which is equivalent to the percentage that