HARRY HUGHES, Governor

975

[(4)] (5) (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;

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

[3.] 2. Any allowance for reserves.

(c-1) (1) For a taxable year ending on or after January 1,

1984 the tax is 3/8 percent on the net earnings under this
section, and 3 1/2 percent on the net earnings [taxable] DEFINED
under § 128A of this article.

(2)  For a taxable year ending on or after January 1,

1985  the tax is 3/16 percent on the net earnings under this
section, and 5 1/4 percent on the net earnings [taxable] DEFINED
under § 128A of this article.

(3)  For a taxable year ending on or after January 1,
1986, the tax is 7 percent on the net earnings [taxable] DEFINED
under § 128A of this article.

(d)   [On] EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION,
ON or before the 15th day of the fourth month after the end of
its calendar or fiscal year, as the case may be, the bank or
association, acting through its president, treasurer, or other
proper officer, shall report under oath to the Comptroller of the
Treasury its net earnings for that next previous taxable period,
and at the same time the SAVINGS bank or association shall pay to
the Comptroller of the Treasury the proper amount of tax for that
period as computed under this section. BEGINNING WITH JANUARY 1,
1984, THE DIRECTOR SHALL ADMINISTER THIS SECTION AND ALL REPORTS
AND PAYMENTS REFERRED TO IN THE PRECEDING PARAGRAPH SHALL BE MADE
TO THE DIRECTOR.

(e)  From the taxes collected from any SAVINGS bank or
association pursuant to the provisions of this section the
[Comptroller] DIRECTOR shall first deduct the cost of the
administration of this section and credit the same to the general
funds of the State. The [Comptroller] DIRECTOR shall then
apportion and pay over the remainder of the taxes collected from
any SAVINGS bank or association pursuant to the provisions of
this section to one or more of the several counties or Baltimore
City, as follows: The net remainder of the tax collected from