HARRY HUGHES, Governor

971

Article 81 - Revenue and Taxes

Section 128(b) and 128A(a)

Annotated Code of Maryland

(1980 Replacement Volume and 1983 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 81 - Revenue and Taxes

128.

(b) (1) In this section the following terms have the
meanings indicated.

(2)   "Savings bank" means an institution or
corporation organized for receiving deposits of money and paying
interest thereon, other than banks having a capital stock.

(3)   "Savings and loan association" means a
corporation that is:

(i) Chartered under the laws of this State as a
savings and loan association; or

(ii) Chartered under the laws of any other
state or of the United States as a savings and loan association
and admitted to do business in this State.

(4)  (i) Except as otherwise provided "net earnings"
means an amount equal to the net income of a taxpayer as if
computed for the particular savings bank or savings and loan
association under the provisions of the subtitle "Income Tax" in
this article; § 280A(C)(6) OF THIS ARTICLE NOTWITHSTANDING, ANY
PROFIT REALIZED FROM THE SALE OR EXCHANGE OF BONDS ISSUED BY THIS
STATE OR ITS POLITICAL SUBDIVISIONS SHALL BE INCLUDED IN NET
EARNINGS.

(ii) "Net earnings" does not include:

1.  Any exclusion from gross income any
amounts which might otherwise be excluded by 280A(c)(4) of this
article;

2.  Any allowance of any dividend or
interest paid or credited on savings accounts and investment
certificates or other apportionment of profits; or

3.   Any allowance for reserves.

128A.

(a) In this section the following words have the meanings
indicated.