Ch. 243

1993 LAWS OF MARYLAND

CHAPTER 243
(Senate Bill 473)

AN ACT concerning

Income Tax - Withholding - Death Benefits for State Employees

FOR the purpose of requiring the Board of Trustees for the Maryland State Retirement
and Pension Systems to withhold Maryland income tax from payments of death
benefits; specifying the percentage of tax to be withheld from payments of death
benefits; providing that income tax not be withheld from payments of death benefits
under certain circumstances; and generally relating to the withholding of Maryland
income tax from death benefits paid for State employees. members of the State's
retirement and pension systems.

BY repealing and reenacting, with amendments,
Article - Tax - General
Section 10-905(c)
Annotated Code of Maryland
(1988 Volume and 1992 Supplement)

BY repealing and reenacting, without amendments,
Article - Tax - General
Section 10-906(a)
Annotated Code of Maryland
(1988 Volume and 1992 Supplement)

BY adding to

Article - Tax - General
Section 10-907(c) and 10-908(e)
Annotated Code of Maryland
(1988 Volume and 1992 Supplement)

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

Article - Tax - General

10-905.

(c) "Payment subject to withholding" means:

(1)     an annuity or sick pay payment described in § 3402(o) of the Internal
Revenue Code;

(2)     income that is subject to the income tax and is distributed by a fiduciary
to a nonresident alien; [and]

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