WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

469 of the Code", since those sections provide for and
regulate foreign trade zones in the State based on the
federal act.

The only other changes are in style.

(C) TAXABLE NET EARNINGS.

"TAXABLE NET EARNINGS" MEANS THE NET EARNINGS OF A FINANCIAL
INSTITUTION COMPUTED UNDER § 8-204 OF THIS TITLE AND MODIFIED
UNDER §§ 8-205 AND 8-206 OF THIS TITLE.

REVISOR'S NOTE: This subsection is new language derived
without substantive change from the first clause of
former Art. 81, § 128A(a)(6), except as it related to
the taxable year.

The term "[t]axable net earnings" is substituted, as
the defined term, for the former term "net earnings",
since only adjusted net earnings are taxable. This
substitution also avoids repetition of phrases such as
net earnings "subject to the tax".

The word "earnings" is substituted for the former word
"income" since other amounts are required to be added
to net income.

Defined term: "Financial institution" § 8-101

8-202. IMPOSITION OF TAX.

(A)  FINANCIAL INSTITUTION FRANCHISE TAX IMPOSED.

A FRANCHISE TAX, MEASURED BY TAXABLE NET EARNINGS, IS
IMPOSED, FOR EACH FISCAL YEAR OF THE STATE, ON EACH FINANCIAL
INSTITUTION EXISTING OR DOING BUSINESS IN THE STATE DURING ANY
PART OF THAT YEAR.

(B)  LIMITATION.

A COUNTY, MUNICIPAL CORPORATION, SPECIAL TAXING DISTRICT, OR
OTHER POLITICAL SUBDIVISION OF THE STATE MAY NOT IMPOSE ON A
SAVINGS BANK OR SAVINGS AND LOAN ASSOCIATION ANY TAX OTHER THAN
ITS REGULAR TAX ON REAL PROPERTY.

REVISOR'S NOTE: Subsection (a) of this section is new

language derived without substantive change from

former Art. 81, § 128A(b)(l) and, as it related to the
measuring of tax, (2).

Subsection (b) of this section is new language derived
without substantive change from the second clause of
former Art. 81, § 128(i).

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