HARRY HUGHES, Governor

Approved March 7, 1980.

CHAPTER 24

(Senate Bill 558)

AN ACT concerning

Income Tax - Pension Exclusion

FOR the purpose of altering the method of calculating and
determining the amount of the allowable pension
subtraction from federal adjusted gross income for
State income tax purposes; and making this Act an
emergency measure.

BY repealing and reenacting, with amendments,

Article 81 - Revenue and Taxes

Section 280(c)

Annotated Code of 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be repealed, amended, or enacted to read as follows: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 their employment as policemen or firemen; (3)
for all taxable years ending after December 31, 1972, THE
LESSER OF (I) 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] OR (II) 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