WILLIAM DONALD SCHAEFER, Governor Ch. 675

BY adding to

Article 64A - Merit System

Section 38A(e)

Annotated Code of Maryland

(1988 Replacement Volume and 1988 Supplement)

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

Article 64A - Merit System

38A.

(c) Notwithstanding any of the provisions or definitions of
this article to the contrary, the term "employee" as used in this
section shall include nonclassified employees as well as
classified employees. In the event of any questions as to who
shall be deemed officers or employees under the provisions of
this section, the matter shall be resolved by the Secretary of
Personnel.

(E) (1) (I) IN THIS SUBSECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(II) 1. "FOREIGN STATE INCOME TAX" MEANS A TAX
ON INCOME IMPOSED BY A STATE OTHER THAN MARYLAND.

2. "FOREIGN STATE INCOME TAX" DOES NOT
INCLUDE A TAX ON INCOME IMPOSED BY A POLITICAL SUBDIVISION OF A
STATE.

(III)   "NONRESIDENT" HAS THE MEANING STATED IN §
10-101(G) OF THE TAX - GENERAL ARTICLE.

(IV)   "STATE" HAS THE MEANING STATED IN §
1-101(U) OF THE TAX - GENERAL ARTICLE.

(2)  SUBJECT TO THE LIMITATIONS PROVIDED UNDER
PARAGRAPH (3) OF THIS SUBSECTION, THE CENTRAL PAYROLL BUREAU
SHALL:

(I)  WITHHOLD FOREIGN STATE INCOME TAX FROM THE
WAGES OR SALARY OF AN OFFICER OR EMPLOYEE OF THE STATE WHO IS A
NONRESIDENT; AND

(II)  PAY THE AMOUNT WITHHELD TO THE APPROPRIATE
TAX COLLECTING AGENCY OF THE STATE WHERE THE OFFICER OR EMPLOYEE
RESIDES.

(3)  THIS SUBSECTION APPLIES ONLY IF:

- 3955 -