WILLIAM DONALD SCHAEFER, Governor                   Ch. 688

Article 81 - Revenue and Taxes

Section 128B

Annotated Code of Maryland

(1980 Replacement Volume and 1986 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

128B.

(a)  In this section, "association" means:

(1)  A savings and loan association;

(2)  A federal association that has an office in this
State; [or]

(3)  A FEDERAL SAVINGS BANK CHARTERED BY THE FEDERAL
HOME LOAN BANK; OR

[(3)] (4) A foreign association that is admitted to
do business in this State.

(b)  In addition to any other tax imposed, each association
shall pay this State an annual franchise tax.

(c)  The franchise tax under this section shall be an amount
equal to one hundred thirty ten-thousandths of one percent of the
total withdrawal value at December 31 of each year of an
association's free share accounts and other deposits originated
in this State.

(d)  An association shall certify to the State Comptroller
the total withdrawal value of free share accounts and deposits
and the franchise tax due in the manner that other taxes are
reported.

(e)  (1) The franchise tax under this section is payable
without interest before April 15 of each year.

(2)  If the franchise tax is not paid, the amount of
unpaid tax bears interest at the rate determined under § 204 of
this article.

(3)  If the franchise tax is not paid before December
1 of the year in which the tax is due, a penalty of 5 percent is
added to the amount due.

(f)  If a Maryland association that is doing business in a
foreign jurisdiction is required to pay a franchise tax to the

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