WILLIAM DONALD SCHAEFER, Governor

Ch. 2

REVISOR'S NOTE: This section is new language derived
without substantive change from the second sentence of
former Art. 81, § 295.

The former reference to "associations" is deleted as
included in the defined term "corporation[s]".

Defined terms: "Corporation" § 10-101
"Income tax" § 1-101

10-812. SAME -- EXEMPT CORPORATIONS.

A CORPORATION EXEMPT FROM INCOME TAX UNDER § 10-104 OF THIS
TITLE SHALL FILE AN INCOME TAX RETURN IF THE CORPORATION:

(1)  HAS UNRELATED BUSINESS TAXABLE INCOME, AS DEFINED
UNDER § 512 OF THE INTERNAL REVENUE CODE; OR

(2)  IS EXEMPT FROM TAXATION UNDER § 501(C)(2) OF THE
INTERNAL REVENUE CODE.

REVISOR'S NOTE: Item (1) of this section is new language
added to state expressly that a nonprofit corporation
that has Maryland unrelated business taxable income
must file a return.

Item (2) of this section is new language derived
without substantive change from the first clause of
the third sentence of former Art. 81, § 295.

In the introductory language of this section, the
reference to "§ 10-104 of this title" is substituted
for the former reference to "§ 288(d) of this
subtitle". Although the reference to "§ 10-104"
includes entities that are exempt under former Art.
81, §§ 12G-12(a), 312(c), 314(a), and 315, the
substitution is nonsubstantive since these entities
either are not corporations or do not meet the
criteria under items (1) and (2) of this section.

Also in the introductory language of this section, the
former reference to an "association" is deleted as
included in the defined term "corporation".

Also in the introductory language of this section, the
former specific requirements of the return are deleted
as unnecessary in light of § 2-104 of this article.

In item (2) of this section, the reference to a
corporation that is "exempt under § 501(c)(2) of the
Internal Revenue Code" is substituted for the former
reference to a corporation "organized or operated for
the exclusive purpose of holding title to property and
collecting income therefrom and turning said income

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