WILLIAM DONALD SCHAEFER, Governor                         S.B. 171

(i) the federal income and social security taxes and income tax
required to be withhold 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.

May 27, 1993

The Honorable Thomas V. Mike Miller, Jr.

President of the Senate

State House

Annapolis, Maryland 21401

Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed Senate Bill 171.

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