Ch. 2                                    LAWS OF MARYLAND

January 1, 1984 and January 1, 1986, the tax rate and the "net
earnings" determination for the taxation of "savings banks and
building, savings and loan associations" under former Art. 81, §
128, change to the same rate and "net income" determination that
applied to entities taxed under former Art. 81, § 128A as
"financial institutions".

In this revision, "financial institution" is redefined to
include entities taxed under former Art. 81, §§ 128 and 128A, and
a single "financial institution franchise tax" is provided.
However, provisions that apply to only 1 of the former entities
are revised to apply to the appropriate entity. See, e.g., §
8-213 of this subtitle.

Former Art. 81, § 128(a) through (h-1), which imposed a
franchise tax on savings banks and savings and loan associations,

is transferred to the Session Laws by Ch. _____, Acts of 1988,

which also enacted this article.

SUBTITLE 3. SAVINGS AND LOAN ASSOCIATION FRANCHISE TAX.

8-301. IMPOSITION OF TAX.

A FRANCHISE TAX, MEASURED BY DEPOSITS ORIGINATING IN THE
STATE, IS IMPOSED,' FOR EACH CALENDAR YEAR, ON EACH SAVINGS AND
LOAN ASSOCIATION.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, §
128B(b).

The reference to the tax being "measured by deposits
originating in the State" is added to distinguish this'
tax from the financial institution franchise tax,
which is measured by taxable net earnings. As to the
financial institution franchise tax, see Subtitle 2 of
this title.

The reference to the tax being "imposed" is
substituted for the former duty to "pay this State",
for consistency with similar provisions elsewhere in
this article.

The phrase "for each calendar year" is substituted for
the former word "annual", to clarify the applicable
period.

The former reference to the franchise tax being "[i]n
addition to any other tax imposed" is deleted as
surplusage.

Defined term: "Savings and loan
association" § 8-101

8-302. TAX RATE.

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