WILLIAM DONALD SCHAEFER, Governor

Ch. 2

(D) AMOUNT OF CREDIT FOR NONRESIDENT.

THE CREDIT ALLOWED A NONRESIDENT UNDER SUBSECTION (A) OF
THIS SECTION FOR TAX ON INCOME PAID TO THE STATE WHERE THE
NONRESIDENT RESIDES IS A FRACTION:

(1)  THE NUMERATOR OF WHICH IS THE MARYLAND TAXABLE
INCOME OF THE NONRESIDENT; AND

(2)  THE DENOMINATOR OF WHICH IS THE TAXABLE INCOME ON
WHICH THE NONRESIDENT PAID THE TAX TO THE STATE WHERE THE
NONRESIDENT RESIDES.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, §
290(c) and, except the reference to "satisfactory
evidence", (a), the first sentence of § 291(a), and
the fifth clause of the fourth sentence of § 279(i).

Subsection (a) of this section is revised to combine
the former separate allowances for a "resident
individual" and "individual not a resident of this
State", for clarity.

In subsection (a) of this section, the defined term
"State income tax" and the word "only" are substituted
for the former references to "income payable ... under
this subtitle", to limit the credit. Therefore,
former Art. 81, § 290(b), which precluded reduction of
"any local income tax imposed under § 283 of this
article", is deleted as unnecessary.

Also in subsection (a) of this section, the word
"credit" is substituted for the former requirements
that the State income tax "shall be reduced" and
"shall be credited", for clarity.

Also in subsection (a) of this section, the word
"paid", is substituted for the former words "has become
liable for" to clarify that payment of taxes to
another state is a prerequisite to claiming a credit
under this section.

In subsection (b)(2) of this section, the reference
to "a resident for less than the full taxable year" is
substituted for the former reference to an "individual
filing a return in accordance with this provision", to
clarify that part-year residents are ineligible for
the credit.

Also in subsection (b)(2) of this section, the former
word "jurisdiction" is deleted as unnecessary in light
of the use of the defined term "state".

- 347 -