Ch. 178

LAWS OF MARYLAND

(b) The addition under subsection (a) of this section
includes interest or dividends, less related expenses,
attributable to an obligation or security of:

(1) another state; or

(2) a political subdivision or authority of another
state.

(c) (1) If exempted by federal law or by treaty from
federal but not State tax on income, the addition under
subsection (a) of this section includes wages.

(2) If exempted by federal law or by treaty from
federal but not State tax on income, the addition under
subsection (a) of this section includes interest or dividends
attributable to an obligation of:

(i) the United States or a foreign government;
or

(ii) an authority, commission, instrumentality,
possession, or territory of the United States or of a foreign
government.

(6) (1) In this subsection, "lump-sum distribution",
"minimum distribution allowance", and "total taxable amount" have
the meanings stated in § 402(e) of the Internal Revenue Code.

(2)  The addition under subsection (a) of this section
includes the amount by which the total taxable amount of a
lump-sum distribution exceeds the sum of:

(i) 60% of the capital gains portion of the
total taxable amount; and

(ii) the minimum distribution allowance.

(3)  For purposes of this subsection, the capital
gains portion of the total taxable amount is determined by
multiplying the total taxable amount by a fraction:

(i) the numerator of which is the number of
calendar years of active participation by the employee in the
plan before January 1, 1974; and

(ii) the denominator of which is the number of
calendar years of active participation by the employee in the
plan.

(e) The addition under subsection (a) of this section
includes the oil percentage depletion allowance claimed under §
613 or § 613A of the Internal Revenue Code.

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