WILLIAM DONALD SCHAEFER, Governor                   Ch. 135

CHAPTER 13 5

(Senate Bill 253)

AN ACT concerning

S Corporations - Financial Institution Franchise
and Income Taxes

FOR the purpose of limiting the income tax exemption for S
corporations; clarifying the income of S corporations that
is subject to State income tax; requiring S corporations to
file income tax and withholding returns at certain times;
providing that S corporations are required to comply with
certain regulations, keep certain records, and report
certain withholdings in a certain manner; specifying dates
on which S corporations make withholdings; clarifying that S
corporations are not financial institutions for purposes of
the financial institution franchise tax; setting out a
definition for information; and providing a delayed
effective date for this Act.

BY repealing and reenacting, with amendments,

Article - Tax - General

Section 8-101(c)(2), 10-104(7), 10-304, 10-804(c), 10-812,

10-822, and 10-909
Annotated Code of Maryland

(As enacted by Chapter ____ (S.B. 1) of the

Acts of the General Assembly of 1988)

BY repealing and reenacting, without amendments,

Article - Tax - General
Section 10-101(i) and 10-104(2)
Annotated Code of Maryland

(As enacted by Chapter ____ (S.B. 1) of the

Acts of the General Assembly of 1988)

BY repealing

Article - Tax - General

Section 10-823

Annotated Code of Maryland

(As enacted by Chapter ____ (S.B. 1) of the

Acts of the General Assembly of 1988)

BY renumbering

Article - Tax - General

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