Ch. 359

1993 LAWS OF MARYLAND

[(b)](C) Except for the county income tax, a. county, municipal corporation,
special taxing district, or other political subdivision. may not impose a general local
income, earnings, or payroll tax, a general occupational license tax, or a general license or
permit tax based on income, earnings, or gross receipts.

(D) (1) THE COUNTY INCOME TAX ON A NONRESIDENT IS MEASURED BY
THE STATE INCOME TAX-ATTRIBUTABLE TO THE EARNED INCOME OF THE
NONRESIDENT THAT IS DERIVED FROM EMPLOYMENT IN THAT COUNTY.

(3) THE COUNTY INCOME TAX DOES NOT APPLY TO A NONRESIDENT
WHO RESIDES IN A STATE THAT HAS ENTERED INTO A RECIPROCAL AGREEMENT
WITH THE COMPTROLLER UNDER § 10-907(A) OF THIS TITLE.

10-806.

(c) For county income tax purposes, a nonresident who derives EARNED income,
AS DEFINED IN § 32(C)(2) OF THE INTERNAL REVENUE CODE, from [salary, wages, or
other compensation for personal services for] employment in a county shall file on
income tax return, unless [the Comptroller determines that each locality in which the
nonresident resides;

(1) imposes no tax on the income of a Maryland resident derived from wages
for employment in that locality;

(2) exempts that income from its tax on income; or

(3) allows a credit for that income and exempts that income from the
withholding requirements for its tax on income] THE NONRESIDENT RESIDES IN A
STATE THAT HAS ENTERED INTO A RECIPROCAL AGREEMENT WITH THE
COMPTROLLER UNDER § 10-907(A) OF THIS TITLE.

10-907.

(a) Income tax is not required to be withheld at the time wages are paid to a
nonresident if:

(1) for State income tax AND COUNTY INCOME TAX withholding purposes
the Comptroller and the state in which the nonresident resides have agreed in writing to
allow a reciprocal exemption from tax and withholding for. the wages of residents of each
state that are earned in the other state;

[(2) for county income tax withholding purposes:

(i) the nonresident derives wages from employment in a county; and

(ii) the Comptroller determines that each locality in which the

nonresident resides:

1. imposes no tax on the income of a Maryland resident from
wages from employment in that locality;

2. exempts that income from its tax on income; or
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