WILLIAM DONALD SCHAEFER, Governor                         Ch. 359

3. allows a credit for that income and exempts that income from
the withholding requirement for its tax on income;] and

[(3)](2) for tips, to the extent that the amount required to be withheld on
the tips causes the total withholdings for the period to exceed the available not wages
other than tips after deductions are made for:

(i) the federal income and social security taxes and income tax
required to be withheld on wages other than tips; and

(ii) the federal income and social security taxes required to be
withheld on the tips.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Comptroller shall, upon enactment of this Act, conduct a study
of potential measures to be taken by the State of Maryland to address the continued lack
of willingness from the State of Delaware to enter into a reciprocal taxing agreement with
the State of Maryland,

The report shall include, but not be limited to:

(1)     current provisions of Maryland law or regulations which are intended to
protect or guard Delaware residents from double taxation of any sort, and the method by
which these provisions could be altered or suspended pending an interstate agreement;

(2)     practices of the Office of the Comptroller or any other administrative
unit of the State of Maryland which are intended to lessen administrative, procedural, or
tax burdens on residents of the State of Delaware, and the methods by which these
provisions could be altered or suspended pending an interstate agreement; and

(3)     other administrative or legislative actions which the State of Maryland
could take to encourage the establishment of a reciprocal taxing agreement between the
State of Delaware and the State of Maryland.

The Comptroller may request information or assistance from other executive
agencies as necessary for the preparation of this' report. The report shall be completed
and presented to the Senate Budget and Taxation Committee and the House of Delegates
Committee on Ways and Means by December 1, 1993.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1993 and shall be applicable to all taxable years beginning on or after December
31, 1993.; provided, however, that if the State of Delaware and the State of Maryland
enter into a reciprocal taxing agreement under § 10-907 of the Tax - General Article,
the provisions of this Act shall be void and of no further force and effect.

Approved May 11, 1993.

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