WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

§ 280A(c)(6) of [this article] ARTICLE 81, AS AMENDED THROUGH
DECEMBER 31, 1988 notwithstanding, any profit realized from the
sale or exchange of bonds issued by this State or its political
subdivisions shall be included in net earnings.

(ii) "Net earnings" does not include:

1.  Any allowance of any dividend or
interest paid or credited on savings accounts and investment
certificates or other apportionment of profits; or

2.  Any allowance for reserves.

(c) (1) Except as provided in subsection (c-1) of this
section, the tax imposed shall be computed at the rate of three
quarters of one per centum (3/4 of 1%) of that portion of the
annual net earnings of the savings bank or of the building,
savings and loan association, which exceeds the sum of one
hundred thousand dollars ($100,000). The computation shall be
made in particular cases either on a calendar year or on a fiscal
year basis, whichever the bank or association is using for its
regular accounting period. The computation shall be based upon
all operations and branches of the bank or association and upon
the annual net earnings of the bank or association as an
entirety.

(2)  The Department may adopt methods to allocate net
earnings of a savings bank or association based on the gross
volume of transactions by that savings bank or association.

(3)  (i) If by reason of any law of any foreign
jurisdiction a savings bank or association chartered in this
State or admitted to do business in this State and doing business
in such other jurisdiction is required to pay a franchise tax to
said foreign jurisdiction based upon its savings accounts or free
shares purchased in the State of Maryland, or is required to pay
to said foreign jurisdiction a tax on its gross receipts
including its gross receipts from business done in the State of
Maryland, or is required to pay to said foreign jurisdiction a
tax on its income including income derived from business done in
the State of Maryland, the savings bank or association may claim
a credit against the tax imposed by this section equal to such
franchise tax or gross receipts tax or income tax so paid to said
foreign jurisdiction based on savings accounts or free shares
purchased in the State of Maryland, or on business done in the
State of Maryland; and

(ii) A savings bank or association may claim a
credit against the tax imposed under this section equal to the
estimated tax paid under subsection (d)(2)(ii) of this section.

(c-1) (1) For a taxable year ending on or after January 1,
1984 the tax is 3/8 percent on the net earnings under this
section, and 3 1/2 percent on the net earnings defined under §
128A of [this article] ARTICLE 81, AS AMENDED THROUGH DECEMBER
31, 1988.

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