WILLIAM DONALD SCHAEFER, Governor                   Ch. 709

Article 81 - Revenue and Taxes

312.

(a-2) (1) An "S" corporation as defined in the Internal
Revenue Code shall withhold and pay over to the Comptroller a tax
for each nonresident shareholder.

(2)  The tax withheld shall be at the rate of 5
percent of each item of net income includable in the nonresident
shareholder's distributive share of "S" corporation income based
upon the shareholder's pro rata share of "S" corporation income
attributable to business carried on in Maryland.

(3)  The return and remittance shall be made to the
Comptroller [on or before the last day of the "S" corporation
taxable year] WITH THE FILING OF THE "S" CORPORATION RETURN.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1987 and shall be applicable to all taxable
years beginning after December 31, 1986.

Approved June 2, 1987.

CHAPTER 709

(House Bill 1242)

AN ACT concerning

Alcoholic Beverages Tax - Exemptions

FOR the purpose of allowing exemptions from the alcoholic
beverages tax for certain alcoholic beverages purchased and
used for certain purposes by religious organizations,
hospitals, and federal authorities; and specifying methods
to claim the exemption.

BY repealing and reenacting, with amendments,

Article 2B - Alcoholic Beverages

Section 131

Annotated Code of Maryland

(1981 Replacement Volume and 1986 Supplement)

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

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