Ch. 718

LAWS OF MARYLAND

All net income shall be allocated to this State if the trade
or business of the corporation is carried on wholly within this
State, but if the trade or business of the corporation is carried
on partly within and partly without this State so much of the net
income of the corporation as is derived from or reasonably
attributable to the trade or business of the corporation carried
on within this State, shall be allocated to this State and any
balance of the net income shall be allocated outside this State.
The portion of the net income derived from or reasonably
attributable to the trade or business carried on within this
State may be determined by a separate accounting where
practicable, but never in the case of a unitary business;
however, where separate accounting is neither allowable nor
practicable the portion of the net income of the corporation
allowable to this State shall be determined in accordance with a
three-factor formula of property, payroll and sales, in which
each factor shall be given equal weight and in which the property
factor shall include rented as well as owned property and
tangible personal property having a permanent situs within this
State and used in the trade or business shall be included as well
as real property. The Comptroller of the Treasury shall have the
right, in those cases where circumstances warrant, to alter any
of the above rules as to the use of the separate accounting
method or the formula method, the weight to be given the various
factors in the formula, the manner of valuation of rented
property included in the property factor and the determination of
the extent to which tangible personal property is permanently
located within the State.]

316.

(A)  IN COMPUTING MARYLAND TAXABLE INCOME, A CORPORATION
SHALL ALLOCATE NET INCOME DERIVED FROM OR REASONABLY ATTRIBUTABLE
TO ITS TRADE OR BUSINESS IN THIS STATE IN THE FOLLOWING MANNER:

(1)  IF A CORPORATION CARRIES ON ITS TRADE OR BUSINESS
WHOLLY IN THE STATE, THE CORPORATION SHALL ALLOCATE ALL OF ITS
NET INCOME TO THE STATE;

(2)  IF A CORPORATION CARRIES ON ITS TRADE OR BUSINESS
IN AND OUT OF THE STATE, THE CORPORATION SHALL ALLOCATE TO THE
STATE THE PART OF THE CORPORATION'S NET INCOME THAT IS DERIVED
FROM OR REASONABLY ATTRIBUTABLE TO THE PART OF ITS TRADE OR
BUSINESS CARRIED ON IN THE STATE, IN THE MANNER REQUIRED IN
SUBSECTION (B), (C), OR (D) OF THIS SECTION.

(B)  EXCEPT AS PROVIDED IN SUBSECTIONS (C) OR (D) OF THIS
SECTION, THE PART OF THE CORPORATION'S NET INCOME DERIVED FROM OR
REASONABLY ATTRIBUTABLE TO TRADE OR BUSINESS CARRIED ON IN THE
STATE MAY BE DETERMINED BY SEPARATE ACCOUNTING IF PRACTICAL.

(C)  (1) IF THE TRADE OR BUSINESS IS A UNITARY BUSINESS, THE
PART OF THE CORPORATION'S MARYLAND MODIFIED INCOME DERIVED FROM

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