WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

THE SAVINGS AND LOAN ASSOCIATION FRANCHISE TAX RATE IS
0.013% OF THE TOTAL WITHDRAWAL VALUE OF THE DEPOSITS OF A SAVINGS
AND LOAN ASSOCIATION THAT:

(1)  ORIGINATE IN THE STATE; AND

(2)  ARE HELD ON DECEMBER 31ST.

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

In the introductory language of this section, the tax
rate is rephrased as "0.013%", for clarity and
brevity.

Also in the introductory language of this section, the
former phrase "free share accounts" is deleted as
included in the word "deposits".

The Tax - General Article Review Committee notes, for
consideration of the General Assembly, that the
requirement that deposits "originate in the State"
does not seem to add significantly to the requirement
that the deposits be "held in the State on December
31" in order to be taxable.

Defined terms: "Savings and loan

association" § 8-101
"Savings and loan association franchise

tax" § 1-101

8-303. CREDIT FOR OTHER TAXES.

A SAVINGS AND LOAN ASSOCIATION ORGANIZED UNDER THE LAWS OF
THIS STATE AND DOING BUSINESS OUTSIDE THIS. STATE MAY CLAIM A
CREDIT AGAINST THE SAVINGS AND LOAN ASSOCIATION FRANCHISE TAX IN
AN AMOUNT THAT EQUALS ANY TAX PAID TO ANOTHER JURISDICTION AS A
FRANCHISE TAX ON DEPOSITS THAT ORIGINATED IN THIS STATE.

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

This section is revised to allow a   "credit" since the

former requirement that the tax "be   reduced" did not

indicate the manner in which the   reduction is to be
made.

The reference to a "savings and loan association
organized under the laws of this State" is substituted
for the former reference to a "Maryland association",
for clarity.

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