Ch. 660

1994 LAWS OF MARYLAND

income tax if the amount unpaid is less than a certain amount; and providing for the
application of this Act.

BY repealing and reenacting, with amendments,
Article - Tax - General
Section 10-815(a), 13-602, and 13-702
Annotated Code of Maryland
(1988 Volume and 1993. Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF

MARYLAND, That the Laws of Maryland read as follows:               

Article - Tax - General

10-815.

(a) Except as provided in subsections (b) and (c) of this section, each individual
who reasonably expects estimated income tax for a taxable year on income not subject to
withholding under Subtitle 9 of this title to exceed [$100] ONE-HALF THE AMOUNT
SPECIFIED IN § 6654(E)(1) OF THE INTERNAL REVENUE CODE shall file a declaration of
estimated income tax.

13-602.

(A)     [A] EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, A tax
collector shall assess interest on unpaid tax from the due date to the date on which the tax
is paid if a person who is required to estimate and pay financial institution franchise tax,
public service company franchise tax, or income tax under § 8-210(b), § 8-405(b), or §
10-902 of this article:

(1)     fails to pay an installment when due; or

(2)     estimates a tax that is:

(i) less than 90% of the tax required to be shown on the return for the
current taxable year; and

(ii) less than the tax paid for the prior taxable year.

(B)     A TAX COLLECTOR MAY NOT ASSESS INTEREST ON UNPAID INDIVIDUAL
INCOME TAX UNDER SUBSECTION (A) OF THIS SECTION IF THE AMOUNT OF UNPAID
INCOME TAX IS LESS THAN ONE-HALF THE AMOUNT SPECIFIED IN § 6654(E)(1) OF
THE INTERNAL REVENUE CODE.

13-702.

(A) [A] EXCEPT AS PROVIDED. IN SUBSECTION (B) OF THIS SECTION, A tax
collector shall assess a penalty not exceeding 25% of the amount underestimated, if a
person who is required to estimate and pay financial institution franchise tax, public
service company franchise tax, or income tax under § 8-210(b), § 8-405(b), or § 10-902 of
this article:

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