Ch. 565                                          LAWS OF MARYLAND

(2)     subject to the additions required under

subsection (b) of this section, in the manner that a corporation

computes, for purposes of the income tax, the Maryland modified
income.

8-209.

(a) Each financial institution existing or doing business
in the State during any part of the fiscal year of the [State]
FINANCIAL INSTITUTION shall file with the Department a financial
institution franchise tax return on or before the 15th day of the
4th month after the end of [the accounting period used as the]
THAT fiscal year [of the financial institution].

8-301.

A franchise tax, measured by deposits [originating] HELD in
the State, is imposed, for each calendar year, on each savings
and loan association.

8-302.

The savings and loan association franchise tax rate is
0.013% of the total withdrawal value of the deposits [of] THAT a
savings and loan association [that:

(1)  originate in the State; and

(2)  are held] HOLDS IN THE STATE on December 31st.

8-303.

A savings and loan association organized under the laws of
this State and doing business outside this State may claim a"
credit against the savings and loan association franchise tax in
an amount that equals any tax paid to another jurisdiction as a
franchise tax on deposits [that originated] HELD in this State.

8-304.

(a) Each savings and loan association that, on December 31,
holds deposits [originating] in the State shall file with the
Comptroller a savings and loan association franchise tax return,
on or before April 15 of the next year.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect January 1, 1989.

Approved May 27, 1988.

- 3938 -