2568

LAWS OF MARYLAND

Ch. 673

OF THE CHIEF EXECUTIVE OFFICER AND APPROVAL BY RESOLUTION OF
THE LEGISLATIVE BODY OF THE COUNTY WHEREIN THE FINANCIAL
INSTITUTION IS LOCATED

(II) 1. MEETS THE REQUIREMENTS TO BE AN
INTERNATIONAL BANKING FACILITY AS SET FORTH IN THE LAWS OF
THE UNITED STATES OR REGULATIONS OF THE BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM; AND

2. IS LOCATED WITHIN A COUNTY WHERE
THERE IS AN APPROVED FOREIGN TRADE ZONE. FOR PURPOSES OF
THIS SECTION "COUNTY" SHALL INCLUDE BALTIMORE CITY.

(6) "NET EARNINGS" MEANS THE NET INCOME OF A
FINANCIAL INSTITUTION FOR ITS ANNUAL ACCOUNTING PERIOD
ENDING WITH OR WITHIN THE FISCAL YEAR OF THE STATE FOR WHICH
THE TAX IS IMPOSED UNDER THIS SECTION, DETERMINED UNDER §
280A(A) OF THIS ARTICLE AND ALLOCABLE TO THIS STATE UNDER
THE PROVISIONS OF SUBSECTION (E) OF THIS SECTION AND
ADJUSTED UNDER SUBSECTION (I) 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 YEAR.

(B) (1) A FRANCHISE TAX IS IMPOSED FOR EACH FISCAL
YEAR OF THE STATE UPON:

(I)  EVERY DOMESTIC FINANCIAL INSTITUTION
FOR THE PRIVILEGE OF EXISTING AS A CORPORATION DURING ANY
PART OF THE STATE'S FISCAL YEAR; AND

(II)  EVERY FINANCIAL INSTITUTION NOT
ORGANIZED UNDER THE LAWS OF THIS STATE FOR THE PRIVILEGE OF
ENGAGING IN BUSINESS IN THIS STATE DURING ANY PART OF THE
STATE'S FISCAL YEAR.

(2) THE FRANCHISE TAX IMPOSED BY THIS SECTION
SHALL BE MEASURED BY THE NET EARNINGS OF THE TAXPAYER'S
ANNUAL ACCOUNTING PERIOD (WHETHER IT IS A 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.

(c)  The rate of tax shall be [seven] 7 percent [(7%)]
of net earnings allocable to this State under the provisions
of this section.

(d)  (1) [For all taxable years beginning after June
30, 1976, every] EVERY financial institution subject to