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Ch. 444 2005 LAWS OF MARYLAND
(7) "PASS-THROUGH ENTITY" MEANS:
(I) AN S CORPORATION:
(II) A PARTNERSHIP; OR
(III) A LIMITED LIABILITY COMPANY THAT IS NOT TAXED AS A
CORPORATION UNDER THIS TITLE.
(b) In addition to any other tax imposed under this title, a tax is imposed on
each [S corporation, partnership, and limited liability company,] PASS-THROUGH
ENTITY that has:
(1) any [shareholder, partner, or] member who is a nonresident of the
State OR IS A NONRESIDENT ENTITY; and
(2) any nonresident taxable income for the taxable year.
(c) (1) The tax imposed under subsection (b) of this section shall be treated
as a tax imposed on the [individual] nonresident [shareholders, partners.] or
NONRESIDENT ENTITY members that is paid on behalf of the [individuals]
NONRESIDENTS OR NONRESIDENT ENTITIES by the [S corporation, partnership, or
limited liability company] PASS-THROUGH ENTITY.
(2) THE COMPTROLLER SHALL PROVIDE BY REGULATION FOR THE
TREATMENT OF THE TAX IMPOSED UNDER SUBSECTION (B) OF THIS SECTION THAT IS
PAID ON BEHALF OF A NONRESIDENT ENTITY MEMBER THAT IS ITSELF A
PASS-THROUGH ENTITY.
(d) (1) Except as provided in paragraph (2) of this subsection, the tax
imposed under subsection (b) of this section is THE SUM OF:
(I) A RATE EQUAL TO THE SUM OF THE RATE OF THE TAX IMPOSED
UNDER § 10-106.1 OF THIS TITLE AND the top marginal State tax rate for individuals
under § 10-105(a)(4) of this subtitle applied to[:
(i)] the sum of each nonresident [partner's] INDIVIDUAL
MEMBER'S distributive share OR PRO-RATA SHARE of a [partnership's]
PASS-THROUGH ENTITY'S nonresident taxable income: AND
(II) THE RATE OF THE TAX FOR A CORPORATION UNDER § 10-105(B)
OF THIS SUBTITLE APPLIED TO THE SUM OF EACH NONRESIDENT ENTITY MEMBER'S
DISTRIBUTIVE SHARE OR PRO-RATA SHARE OF A PASS-THROUGH ENTITY'S
NONRESIDENT TAXABLE INCOME.
[(ii) the sum of each nonresident shareholder's pro rata share of an
S corporation's nonresident taxable income; or
(iii) the sum of each nonresident member's distributive share of a
limited liability company's nonresident taxable income.]
(2) The tax required to be paid for any taxable year on behalf of
[nonresident shareholders, nonresident partners, or] nonresident OR NONRESIDENT
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