3476                                                VETOES

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.

(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
taxation under this section shall make a declaration of its
estimated tax if its total tax for the current taxable year
reasonably may be expected to exceed $1,000.

(2) The declaration of estimated tax shall be
filed with the Director [of the State Department of
Assessments and Taxation] on or before the first day of the
sixth month following the beginning of the [institution's]
TAXPAYER'S taxable year, at which time not less than 50
percent of the tax so estimated for the full taxable year is
due and payable.

(e) (1) Every financial institution shall file with
the Director [of the State Department of Assessments and
Taxation] a report of its net earnings for its annual
accounting period ending within the fiscal year of the State
for which the tax is imposed on or before the fifteenth day
of the fourth month following the close of the annual
accounting period of the financial institution.