HARRY HUGHES, Governor

1655

AN ACT concerning

Income Tax - Corporate Taxable Income

FOR the purpose of including in net income of corporations,,
interest and dividends received on state and municipal
obligations other than the State of Maryland and its
political subdivisions and including certain interest
and dividends on obligations of any territory or
possession of the United States or any foreign
government.

BY repealing and reenacting, with amendments,

Article 81 - Revenue and Taxes

Section 280A(b)

Annotated Code of Maryland

(1980 Replacement Volume and 1981 Supplement)

SECTION. 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
read(s) as follows:

Article 81 - Revenue and Taxes

280A.

(b) There shall be added to the taxable income of such
taxpayer: (1) net income taxes, and all other net taxes
based on income, imposed by the State of Maryland, and any
other state, the District of Columbia and any political
subdivision of the State of Maryland or any other state; (2)
the net capital loss carry-back as defined in § 1212 of the
Internal Revenue Code, as amended from time to time [and];
(3) for all taxable years beginning after December 31, 1973,
the oil percentage depletion allowance as claimed and
allowed under § 613 of the Internal Revenue Code[.]; (4)
INTEREST OR DIVIDENDS, (LESS RELATED EXPENSES), ON
OBLIGATIONS OR SECURITIES OF ANY STATE OR OF A POLITICAL
SUBDIVISION OR AUTHORITY THEREOF (OTHER THAN THIS STATE AND
ITS POLITICAL SUBDIVISIONS AND AUTHORITIES); AND (5)
INTEREST OR DIVIDENDS ON OBLIGATIONS OF ANY AUTHORITY,
COMMISSION, INSTRUMENTALITY, TERRITORY OR POSSESSION OF THE
UNITED STATES. OR OF ANY FOREIGN GOVERNMENT, WHICH BY THE
LAWS OR TREATIES OF THE UNITED STATES ARE EXEMPT FROM
FEDERAL INCOME TAX BUT NOT FROM STATE INCOME TAXES.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall be effective for taxable years ending after December
31, 1981.