HARRY HUGHES, Governor

725

(A)   "ASSOCIATION" DEFINED.

IN THIS SECTION, "ASSOCIATION" MEANS:

(1) A SAVINGS AND LOAN ASSOCIATION;

(2)       A FEDERAL ASSOCIATION THAT HAS AN OFFICE IN
THIS STATE; OR

(3)       A FOREIGN ASSOCIATION THAT IS ADMITTED TO DO
BUSINESS IN THIS STATE.

(B)   TAX IMPOSED.

IN ADDITION TO ANY OTHER TAX IMPOSED, EACH ASSOCIATION
SHALL PAY THIS STATE AN ANNUAL FRANCHISE TAX.

(C)   RATE.

THE FRANCHISE TAX UNDER THIS SECTION SHALL BE AN AMOUNT
EQUAL TO ONE HUNDRED THIRTY TEN-THOUSANDTHS OF ONE PERCENT
OF THE TOTAL WITHDRAWAL VALUE AT DECEMBER 31 OF EACH YEAR OF
AN ASSOCIATION'S FREE SHARE ACCOUNTS AND OTHER DEPOSITS
ORIGINATED IN THIS STATE.

(D)   TAX REPORT.

AN ASSOCIATION SHALL CERTIFY TO THE STATE COMPTROLLER
THE TOTAL WITHDRAWAL VALUE OF FREE SHARE ACCOUNTS AND
DEPOSITS AND THE FRANCHISE TAX DUE IN THE MANNER THAT OTHER
TAXES ARE REPORTED.

(E)   DUE DATE; PENALTY AND INTEREST.

(1)   THE FRANCHISE TAX UNDER THIS SECTION IS
PAYABLE WITHOUT INTEREST BEFORE APRIL 15 OF EACH YEAR.

(2)   IF THE FRANCHISE TAX IS NOT PAID, THE AMOUNT
OF UNPAID TAX BEARS INTEREST AT THE RATE OF THREE-QUARTERS
OF ONE PERCENT FOR EACH MONTH OR FRACTION OF A MONTH.

(3)   IF THE FRANCHISE TAX IS NOT PAID BEFORE
DECEMBER 1 OF THE YEAR IN WHICH THE TAX IS DUE, A PENALTY OF
5 PERCENT IS ADDED TO THE AMOUNT DUE.

(F)   CERTAIN REDUCTIONS.

IF A MARYLAND ASSOCIATION THAT IS DOING BUSINESS IN A
FOREIGN JURISDICTION IS REQUIRED TO PAY A FRANCHISE TAX TO
THE FOREIGN JURISDICTION BASED ON ITS FREE SHARES ORIGINATED
IN THIS STATE, THE FRANCHISE TAX UNDER THIS SECTION SHALL BE
REDUCED TO THE EXTENT OF THE TAX PAID TO THE FOREIGN
JURISDICTION.

REVISOR'S NOTE: Ch. ______, Acts of 1980, which enacted

the Financial Institutions Article, also added
this section. This section is new language