HARRY HUGHES, Governor

1721

AN ACT concerning

Partnerships - Income Tax Returns

FOR the purpose of requiring partnerships to file income tax
returns; defining the term partnership; and clarifying
language.

BY repealing and reenacting, with amendments,

Article 81 - Revenue and Taxes

Section 315

Annotated Code of Maryland

(1975 Replacement Volume and 1980 Supplement)

(1980 Replacement Volume)

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be repealed, amended, or enacted to read as follows: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

315.

EVERY PARTNERSHIP (AS DEFINED IN SECTION 761 OF THE
INTERNAL REVENUE CODE) SHALL MAKE A RETURN FOR EACH TAXABLE
YEAR, STATING SPECIFICALLY THE ITEMS OF ITS GROSS INCOME AND
ALLOWABLE DEDUCTIONS, AND SUCH OTHER INFORMATION AS IS
DEEMED NECESSARY FOR THE ADMINISTRATION OF THE PROVISIONS OF
THIS SUBTITLE.

[Individuals carrying on business in partnership]
PARTNERS shall be liable for income tax only in their
[individual] REPRESENTATIVE RESPECTIVE capacity, and no
income tax shall be assessable hereunder upon the income of
any partnership. All such income shall be assessable to the
individual partners; it shall be reported by such partners
[as individuals] upon their respective individual income
returns, and it shall be taxed to them [as individuals]
along with their other income at the rates and in the manner
herein provided for the taxation of income [of individuals].
In computing the tax of each partner there shall be included
in [his] income and allowable deductions, respectively, that
proportion of the income and allowable deductions,
respectively, of the partnership ending with or in the
taxable year of the partner, for the annual accounting
period of the partnership that such partner's distributive
share (whether distributed or not) of the net income of the
partnership for such annual accounting period, bears to the
total net income of the partnership for such annual
accounting period.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall apply to all taxable years beginning after December
31, 1980.