WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

(2) THE METHOD THAT THE COMPTROLLER REQUIRES    TO

DETERMINE FAIRLY THE PART OF THE INCOME DERIVED FROM    OR

REASONABLY ATTRIBUTABLE TO THE TRADE, BUSINESS, PROFESSION,     OR
OCCUPATION CARRIED ON IN THE STATE.

REVISOR'S NOTE: This section formerly appeared as Art. 81,
§ 287.

The only changes are in style.

As to other income of a nonresident that is subject to
county income tax, see § 10-103 of this title.

Defined terms: "Comptroller" § 1-101
"Nonresident" § 10-101

10-402. SAME -- FOR CORPORATION.

(A)  IN GENERAL.

IN COMPUTING MARYLAND TAXABLE INCOME, A CORPORATION SHALL
ALLOCATE NET INCOME DERIVED FROM OR REASONABLY ATTRIBUTABLE TO
ITS TRADE OR BUSINESS IN THIS STATE IN THE FOLLOWING MANNER:

(1)  IF A CORPORATION CARRIES ON ITS TRADE OR BUSINESS
WHOLLY WITHIN THE STATE, THE CORPORATION SHALL ALLOCATE TO THE
STATE ALL OF THE NET INCOME OF THE CORPORATION; AND

(2)  IF A CORPORATION CARRIES ON ITS TRADE OR BUSINESS
IN AND OUT OF THE STATE, THE CORPORATION SHALL ALLOCATE TO THE
STATE THE PART OF THE CORPORATION'S MARYLAND MODIFIED INCOME THAT
IS DERIVED FROM OR REASONABLY ATTRIBUTABLE TO THE PART OF ITS
TRADE OR BUSINESS CARRIED ON IN THE STATE, IN THE MANNER REQUIRED
IN SUBSECTION (B), (C), OR (D) OF THIS SECTION.

(B)  DETERMINATION --BY SEPARATE ACCOUNTING.

EXCEPT AS PROVIDED IN SUBSECTION (C) OR (D) OF THIS SECTION,
THE PART OF THE CORPORATION'S MARYLAND MODIFIED INCOME DERIVED
FROM OR REASONABLY ATTRIBUTABLE TO TRADE OR BUSINESS CARRIED ON
IN THE STATE MAY BE DETERMINED BY SEPARATE ACCOUNTING IF
PRACTICABLE.

(C)  SAME --BY 3-FACTOR FORMULA.

(1) IF THE TRADE OR BUSINESS IS A UNITARY BUSINESS,
THE PART OF THE CORPORATION'S MARYLAND MODIFIED INCOME DERIVED
FROM OR REASONABLY ATTRIBUTABLE TO TRADE OR BUSINESS CARRIED ON
IN THE STATE SHALL BE DETERMINED USING A 3-FACTOR FORMULA THAT
WEIGHS PROPERTY, PAYROLL, AND SALES EQUALLY.

(2) THE PROPERTY FACTOR UNDER PARAGRAPH (1) OF THIS

SUBSECTION SHALL INCLUDE:

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