H.B. 1322                                                 VETOES

to use a certain method to determine the amount of estimated income tax required
to be paid; exempting certain fiduciaries from estimated income tax filing
requirements for certain taxable years; providing for the retroactive application of
this Act; and generally relating to the income taxation of trusts and estates.

BY repealing and reenacting, with amendments,
Article - Tax - General

Section 10-101(h)(1)(iii), 10-207(p), 10-703 10-703(b), and 10-815
Annotated Code of Maryland
(1988 Volume and 1992 Supplement)

BY adding to

Article - Tax - General
Section 10-204(g) and 10-902(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

10-101.

(h) (1) "Resident" means:

(iii) a fiduciary, other than a personal representative, of a trust if:

1.       the trust was created, or consists of property transferred, by
the will of a decedent who was domiciled in the State on the date of the decedent's death;

2.        [the creator or grantor of the trust was a resident of the
State on the date the trust was created;

3.] the creator or grantor of the trust is a current resident of the
State; or

[4.] 3. the trust is principally administered in the State.

10-204.

(G) (1) IN THIS SUBSECTION, "REMAINDERMAN REMAINDERMEN"
INCLUDES A PERSON WHOSE REMAINDER INTEREST IS VESTED, CONTINGENT, OR
VESTED SUBJECT TO DIVESTMENT.

(2) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION; THE
ADDITION UNDER SUBSECTION (A) OF THIS SECTION INCLUDES ANY CAPITAL/LOSS
DERIVED FROM THE SALE OR OTHER DISPOSITION OF INTANGIBLE PERSONAL

- 3652 -