Ch. 2                                    LAWS OF MARYLAND

2. EXEMPTS A RESIDENT OF THIS STATE FROM
TAX ON INCOME OR WITHHOLDING ON WAGES FOR EMPLOYMENT IN THE OTHER
STATE OR ALLOWS A RESIDENT OF THIS STATE A CREDIT THAT IS
SUBSTANTIALLY SIMILAR TO THE CREDIT UNDER § 10-703 OF THIS TITLE;

(2)  FOR COUNTY INCOME TAX WITHHOLDING PURPOSES:

(I)  THE NONRESIDENT DERIVES WAGES FROM
EMPLOYMENT IN A COUNTY; AND

(II)  THE COMPTROLLER DETERMINES THAT EACH
LOCALITY IN WHICH THE NONRESIDENT RESIDES:

1.   IMPOSES NO TAX ON THE INCOME OF A
MARYLAND RESIDENT FROM WAGES FROM EMPLOYMENT IN THAT LOCALITY;

2.  EXEMPTS THAT INCOME FROM ITS TAX ON
INCOME; OR

3.   ALLOWS A CREDIT FOR THAT. INCOME AND
EXEMPTS THAT INCOME FROM THE WITHHOLDING REQUIREMENT FOR ITS TAX
ON INCOME; AND

(3)  FOR TIPS, TO THE EXTENT THAT THE AMOUNT REQUIRED
TO BE WITHHELD ON THE TIPS CAUSES THE TOTAL WITHHOLDINGS FOR THE
PERIOD TO EXCEED THE AVAILABLE NET WAGES OTHER THAN TIPS AFTER
DEDUCTIONS ARE MADE FOR:

(I)  THE FEDERAL INCOME AND SOCIAL SECURITY
TAXES AND INCOME TAX REQUIRED TO BE WITHHELD ON WAGES OTHER THAN
TIPS; AND

(II)  THE FEDERAL INCOME AND SOCIAL SECURITY
TAXES REQUIRED TO BE WITHHELD ON THE TIPS.

(B) SICK PAY AND ANNUITY PAYMENTS NOT SUBJECT TO
WITHHOLDING.

UNLESS THE PAYEE SPECIFICALLY ASKS THAT INCOME TAX BE
WITHHELD FROM A SICK PAY OR ANNUITY PAYMENT, INCOME TAX IS NOT
REQUIRED TO BE WITHHELD FROM THAT PAYMENT.

REVISOR'S NOTE: Subsection (a) of this section is new
language derived without substantive change from the
third sentence of former Art. 81, § 312(b-l), the
second clause of § 291(b), and the third sentence of §
283(a-1).

Subsection (b) of this section is new language derived
without substantive change from former Art. 81, §
312(a-l)(l), as it related to sick pay and annuity
payments, and revised to clarify that, absent a
request, a payor may not withhold income tax from
these payments.

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