WILLIAM DONALD SCHAEFER, Governor Ch. 110

BY repealing and reenacting, with without amendments,

Article - Tax - General
Section 8-204

Annotated Code of Maryland
(1988 Volume)

BY adding to

Article - Tax - General
Section 10-206(e)
Annotated Code of Maryland
(1988 Volume)

BY repealing and reenacting, with amendments,

Article - Tax - General
Section 10-306
Annotated Code of Maryland
(1988 Volume)

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

Article - Tax - General

8-204.

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

(1)  based on the accounting period used as its fiscal
year; and

(2)  subject to the [additions required under
subsection (b)] MODIFICATIONS UNDER SUBSECTIONS (B) AND (C) of
this section, in the manner that a corporation computes, for
purposes of the income tax, the Maryland modified income.

(b)  A financial institution shall add to its net earnings
computed under subsection (a) of this section the amounts that,
even if otherwise allowed to be subtracted under § 10-307(b) and
(g)(3) of this article, equal:

(1)  profit realized from the sale or exchange of
bonds issued by this State or a political subdivision of this
State;

(2)  dividends received from foreign corporations and
included in federal gross income under § 78 of the Internal
Revenue Code;

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