HARRY HUGHES, Governor

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Former Art. 81, § 9(k), which provided for an
exemption from State taxation for "operating property
of railroad, express, or transportation companies,
parlor car, and sleeping car companies" is deleted as
obsolete. The exemption was based on the payment of a
franchise tax by these companies under former Art. 81,
§ 130 of the Code. Since there are no longer any
express, parlor car, or sleeping car companies
functioning in the State, no franchise tax is imposed
.on them. The Department indicated that no franchise
tax is imposed on a transportation company.
Currently, the only franchise tax being imposed under
Art. 81, § 130 of the Code is on public utility
companies. In regard to the reference in former §
9(k) to "railroad", Ch. 865, Acts of 1980 deleted the
reference to railroad in Art. 81, § 130. As a result
of this 1980 amendment, a railroad is no longer
subject to the franchise tax. Thus, the railroad
could not pay a franchise tax to qualify for the
exemption under Art. 81, § 9(k).

Defined terms: "Operating property" § 1-101
"Person" § 1-101 "Property" § 1-101
"Property tax" § 1-101

6-104. STOCK IN BUSINESS OF MANUFACTURING OR COMMERCIAL
BUSINESS.

EXCEPT AS OTHERWISE PROVIDED IN §§ 7-222 AND 7-226 OF THIS
ARTICLE, ANY STOCK IN BUSINESS OF A PERSON WHO ENGAGES IN A
MANUFACTURING OR COMMERCIAL BUSINESS IN THE STATE IS SUBJECT TO
PROPERTY TAX.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, §
8(6), as it related to stock in business as taxable
property.

The introductory phrase "[e]xcept as otherwise
provided in §§ 7-222 and 7-226 of this article" is
substituted for the former reference to "[e]xcept as
in §§ 9, 9A, 9B, and 10 provided", for clarity.

The former phrase "firm or corporation" is deleted as
included in the defined term "person".

The balance of former Art. 81, § 8(6), which related
to where stock in business is deemed permanently
located, now appears as § 5-102 of this article.

Defined terms: "Manufacturing" § 1-101
"Person" § 1-101 "Property tax" § 1-101

SUBTITLE 2. IMPOSITION OF TAXES.