Ch. 2

LAWS OF MARYLAND

In subsection (a)(2)(i)2. and (ii)4. of this section,
the references to an entity that "is not organized
under the laws of the United States or of a state" are
substituted for the former references to a "foreign"
entity "as defined in the tax laws of the United
States" and to a "foreign" entity, to state expressly
that the entity is created in a jurisdiction outside
the United States.

In subsection (a)(2)(i)3. of this section, the former
parenthetical "(including the taxpayer)" is deleted as
included in the reference to "a company".

In subsection (a)(3)(ii) of this section, the former
reference to "Baltimore City" is deleted as
unnecessary in light of the defined term "county".

In subsection (a)(4) of this section, the reference to
the "total liabilities shown in the records" is
substituted for the former references to "liabilities,
including deposits and other sources of funds", for
clarity.

In subsections (b) and (c) of this section, the words
"qualifying amount" and "amount" are substituted for
the former references to "adjusted eligible net
earnings", for clarity.

Subsection (c) of this section is revised to
incorporate the substance of former Art. 81, §
128A(i)(2) through (5), which defined "[a]pplicable
expenses", "[e]ligible gross earnings", "[e]ligible
net earnings" and "[i]neligible funding amount", since
the former definitions appeared only once.

Defined terms: "Approved foreign trade

zone" § 8-201
"Company" § 8-101 "County" § 1-101
"Financial institution" § 8-101 "Person" § 1-101
"State" § 1-101 "Taxable net earnings" § 8-201

8-206. SAME -- ALLOCATION.

(A)  IN GENERAL.

IN COMPUTING TAXABLE NET EARNINGS, A FINANCIAL INSTITUTION
WITH NET EARNINGS DERIVED OUTSIDE THE STATE SHALL ALLOCATE ITS
NET EARNINGS, IN THE MANNER THAT THE DEPARTMENT REQUIRES, BASED
ON THE GROSS VOLUME OF THE TRANSACTIONS OF THE FINANCIAL
INSTITUTION INSIDE AND OUTSIDE THE STATE.

(B)  INTEREST FROM HOLDING COMPANY.

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