WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

nonprofit community swimming pool, and a trust that
forms part of a stock bonus, pension profit sharing,
annuity, or deferred compensation plan, is deleted as
unnecessary in light of the general reference to a
corporation "exempt from taxation under § 501 of the
Internal Revenue Code".

Former Art. 81, § 279(d), which defined
"[p]artnership", is deleted as unnecessary in light of
the reference to "§ 761 of the Internal Revenue Code"
in item (6) of this section.

Former Art. 81, § 314(b) and the second and third
clauses of (a), which related to assessing, reporting
and taxing the income of separate fiduciary accounts
participating in a common trust fund and to tax
computation, are deleted as unnecessary in light of
the federal requirement under the Internal Revenue
Code that similar computations be made and the
resulting income be included in the federal adjusted
gross income of an individual or federal net income of
a corporation.

The third and fourth sentences and the first clause of
the second sentence of former Art. 81, § 315, which
related to assessing, reporting and taxing the income
of a partnership, are deleted as unnecessary in light
of federal requirements that similar computations be
made and the resulting income be included in the
federal adjusted income of an individual or federal
net income of a corporation.

The Tax - General Article Review Committee notes, for
consideration by the General Assembly, that when
former Art. 81, § 288(d)(9) — now item (7) of this
section -- was enacted, S corporations did not pay any
federal income tax. Subsequently, however, §§ 1374
and 1375 of the Internal Revenue Code imposed federal
income tax liability on S corporations under certain
circumstances.

As to the requirement that a partnership file a tax
return, see § 10-814 of this title.

Defined terms: "Financial institution

franchise tax" § 1-101
"Income tax" § 1-101 "Internal Revenue Code" § 1-101
"S corporation" § 10-101

STATE INCOME TAX RATES.

INDIVIDUAL.

STATE INCOME TAX RATE FOR AN INDIVIDUAL IS:

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