WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

SUBJECT TO THE LIMITATIONS IN SUBSECTIONS (B) AND (C) OF
THIS SECTION, ON OR BEFORE APRIL 15TH OF EACH YEAR, THE
DEPARTMENT SHALL COMPUTE THE PUBLIC SERVICE COMPANY FRANCHISE
TAX, BASED ON THE GROSS RECEIPTS REPORTED FOR THE PRECEDING YEAR
IN THE RETURN OF EACH PUBLIC SERVICE COMPANY UNDER § 8-404(A) OF
THIS SUBTITLE.

(B)  CREDIT -- ESTIMATED TAXES PAID.

IN DETERMINING THE TAX UNDER THIS SECTION, THE DEPARTMENT
SHALL ALLOW A CREDIT FOR ESTIMATED PUBLIC SERVICE COMPANY
FRANCHISE TAX PAID UNDER § 8-408(B) OF THIS SUBTITLE.

(C)  SAME -- TARIFF CHARGES OF TELEPHONE COMPANY.

IN DETERMINING THE TAX UNDER THIS SECTION, THE DEPARTMENT
SHALL ALLOW TO A TELEPHONE COMPANY A CREDIT FOR ALL APPROVED AND
APPLICABLE FEDERAL AND STATE TARIFF CHARGES FOR TELEPHONE
LIFELINE SERVICE NOT BILLED TO ELIGIBLE SUBSCRIBERS AS PROVIDED
IN ARTICLE 78, § 26A OF THE CODE.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, §
131(b)(1) and, as it related to computation of the
tax, the third clause of (a).

In subsections (a) and (b) of this section, the
defined term "public service company franchise tax" is
substituted for the former references to "the State
tax" and "the amount", for clarity. Similarly, the
defined term "public service company" is substituted
for the former words "such taxpayer".

In subsection (a) of this section, the reference to an
assessment "based on the gross receipts reported for
the preceding year in the return ... under § 8-404(a)
of this subtitle" is substituted for the former
reference to "its gross receipts aforesaid for such
year", for clarity, since the returns do not include
current receipts.

Also in subsection (a) of this section, the former
references to dates in 1955 and before are deleted as
obsolete.

Defined terms: "Department" § 1-101

"Gross receipts" § 8-401

"Public service company" § 8-401

"Public service company franchise tax" § 1-101

8-406. CERTIFICATION TO COMPTROLLER.

ON OR BEFORE APRIL 15TH OF EACH YEAR, THE DEPARTMENT SHALL
CERTIFY TO THE COMPTROLLER THE AMOUNT OF THE PUBLIC SERVICE
COMPANY FRANCHISE TAX THAT EACH PUBLIC SERVICE COMPANY OWES.

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