WILLIAM DONALD SCHAEFER, Governor                   Ch. 565

Approved May 27, 1988.

CHAPTER 565

(Senate Bill 235)

AN ACT concerning

Franchise Taxes - Financial Institutions and Savings
and Loan Associations

FOR the purpose of specifying that the financial institution
franchise tax is imposed and computed and a return filed
based on the fiscal year of the financial institution;
eliminating a requirement that certain deposits originate in
this State in order to be subject to for purposes of the
savings and loan association franchise tax; and providing a
delayed effective date for this Act.

BY repealing and reenacting, with amendments,

Article - Tax - General

Section 8-202(a), 8-204(a), 8-209(a), and 8-302 8-301,

8-302, 8-303, and 8-304(a)
Annotated Code of Maryland

(As enacted by Chapter ____ (S.B. 1) of the

Acts of the General Assembly of 1988)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Tax - General

8-202.

(a) A franchise tax, measured by taxable net earnings, is
imposed[, for each fiscal year of the State,] ANNUALLY on each
financial institution existing or doing business in the State
during any part of [that] THE FISCAL year OF THE FINANCIAL
INSTITUTION.

8-204.

(a) A financial institution shall compute its net earnings:

(1) based on the accounting period used as its fiscal
year [and ending with or during the fiscal year of the State];
and

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