Ch. 545                                       LAWS OF MARYLAND

Approved May 25, 1989.

CHAPTER 545

(Senate Bill 41)

AN ACT concerning

Income Tax - Distributions of Exempt Interest from Mutual Funds

FOR the purpose of providing, for Maryland individual and
corporation income tax purposes, a subtraction from federal
adjusted gross income for certain distributions from mutual
funds attributable to certain tax exempt interest or
dividends; providing certain requirements for a mutual fund
to qualify to make distributions eligible for the
subtraction; requiring that a distribution must be
designated as a State tax exempt interest dividend in a
certain written notice to be eligible for the subtraction;
providing an addition to net earnings for purposes of the
financial institution franchise tax; providing for the
application of this Act; and generally relating to a
Maryland income tax subtraction modification for certain
distributions from mutual funds attributable to certain tax
exempt interest or dividends.

BY repealing and reenacting, without amendments,

Article - Tax - General
Section 10-207(a) and 10-307(a)
Annotated Code of Maryland
(1988 Volume)

BY adding to

Article - Tax - General
Section 10-207(g-l)
Annotated Code of Maryland
(1988 Volume)

BY repealing and reenacting, with amendments,

Article - Tax - General
Section 8-204 and 10-307(g)
Annotated Code of Maryland
(1988 Volume)

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