WILLIAM DONALD SCHAEFER, Governor Ch. 568

Section 8-406 and 8-407
Annotated Code of Maryland

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

Acts of the General Assembly of 1988)

BY repealing and reenacting, with amendments,

Article - Tax - General

Section 8-409

Annotated Code of Maryland

(As enacted by Chapters ___ and ___ (S.B. 1 and 2)

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

2-1101.

The Comptroller shall distribute the public service company
franchise tax revenue [that the Comptroller collects or receives
from the Department] to the General Fund of the State.

8-401.

(c) (2) "Public service company" does not include:

(i) a county; [or]

(ii) a municipal corporation; OR

(III) A NONPROFIT ELECTRIC COOPERATIVE THAT
DOES NOT GENERATE ELECTRICITY.

[8-405.

(a)  Subject to the limitations in subsections (b) and (c)
of this section, on or before April 15th of each year, the
Department shall compute the public service company franchise
tax, based on the gross receipts reported for the preceding year
in the return of each public service company under § 8-404(a) of
this subtitle.

(b)  In determining the tax under this section, the
Department shall allow a credit for estimated public service
company franchise tax paid under § 8-408(b) of this subtitle.

(c)  In determining the tax under this section, the
Department shall allow to a telephone company a credit for all
approved and applicable federal and State tariff charges for

- 3953 -