2566

LAWS OF MARYLAND

Ch. 673

Article 81 - Revenue and Taxes

128A.

[(a) A franchise tax is hereby annually levied and
imposed for each fiscal year of the State beginning after
June 30, 1968, upon every domestic financial institution for
the privilege of existing as a corporation during any part
of the State's fiscal year, and upon every financial
institution organized under the laws of the United States or
another state or nation for the grant to it of the privilege
in corporate or organized form of transacting or for the
actual transaction by it of any business within this State
during any part of the State's fiscal year. "Financial
institution" as used in this section shall include all
commercial banks, safe deposit and trust companies, and
finance corporations as defined in § 2(9) of this article
but shall not include domestic or foreign finance
corporations which make loans exclusively to farmers for
agricultural purposes or any corporation licensed under the
Small Business Investment Act of 1958, as amended (15 USCA
661 et seq., as amended).

(b) The tax imposed by this section shall be measured
by the net earnings of such financial institution for the
taxpayer's annual accounting period, whether calendar year
or fiscal year as defined in § 279(h) of this article,
ending within the fiscal year of the State for which the tax
is imposed. For the fiscal year of the State ending June 30,
1969, the tax shall be measured by only those net earnings
of the financial institution as are for the period after
December 31, 1967. "Net earnings" for purposes of this
section shall mean the net income of such financial
institution for its annual accounting period ending within
the fiscal year of the State for which the tax is imposed,
determined in accordance with the provisions of § 280A of
this article, allocable to this State under the provisions
of subsection (e) of this section; provided, however, that
the financial institution shall include in its income
interest upon obligations of the United States, of any state
including Maryland, of any county, municipal or public
corporation, authority, special district, or political
subdivision of any state including Maryland, and of the
respective instrumentalities thereof, and shall further
include in its income, § 280A(c)(4) of this article
notwithstanding, all other interest and dividends to the
extent included in its taxable income as defined in the laws
of the United States, as amended from time to time and in
effect for the corresponding taxable year.]

(A) IN THIS SECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(1) "DIRECTOR" MEANS THE DIRECTOR OF THE
DEPARTMENT OF ASSESSMENTS AND TAXATION.