WILLIAM DONALD SCHAEFER- Governor

Ch. 256

(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

10-218.

(a)     Only an individual who itemizes deductions on the individual's federal income
tax return may elect to itemize deductions on the individual's income tax return.

(b)     An individual who elects to itemize deductions is allowed as a deduction the
sum of the individual's federal itemized deductions:

(1)     limited and reduced as required under the Internal Revenue Code; and

(2)     further reduced by the amount claimed as taxes on income paid to a
state or political subdivision of a state, [determined without regard to any reductions
under § 68 of the Internal Revenue Code] AS ADJUSTED UNDER SUBSECTION (C) OF
THIS SECTION.

(C) THE AMOUNT OF TAXES ON INCOME PAID TO A STATE OR POLITICAL
SUBDIVISION OF A STATE SUBTRACTED FROM FEDERAL ITEMIZED DEDUCTIONS
UNDER SUBSECTION (B)(2) OF THIS SECTION SHALL BE REDUCED BY AN AMOUNT
EQUAL TO THE PRODUCT OF MULTIPLYING THE TOTAL REDUCTION TO ITEMIZED
DEDUCTIONS REQUIRED UNDER § 68 OF THE INTERNAL REVENUE CODE TIMES A
FRACTION:

(1) THE NUMERATOR OF WHICH IS THE AMOUNT CLAIMED AS TAXES
PAID TO A STATE OR POLITICAL SUBDIVISION OF A STATE; AND

(2) THE DENOMINATOR OF WHICH IS THE TOTAL AMOUNT OF FEDERAL
ITEMIZED DEDUCTIONS, WITHIN THE MEANING OF § 68(C) OF THE INTERNAL
REVENUE CODE, BEFORE THE REDUCTION REQUIRED UNDER § 68. AFTER
SUBTRACTING A PRO RATA PORTION OF THE REDUCTION TO ITEMIZED
DEDUCTIONS REQUIRED UNDER § 68 OF THE INTERNAL REVENUE CODE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1993 and shall apply to all taxable years beginning after December 31, 1992.

Approved May 11, 1993.

CHAPTER 256
(Senate Bill 636)

AN ACT concerning

Income Tax - Subtraction Modification for Two-Income Households

FOR the purpose of altering a subtraction modification under the income tax to provide

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