WILLIAM DONALD SCHAEFER, Governor

S.B. 480

Article - Tax - General
Section 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

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, REDUCED BY THE
CREDIT ALLOWED UNDER § 10-703 OF THIS ARTICLE.

(B)     INTEREST MAY NOT BE ASSESSED ON THE UNDERESTIMATION OF
INDIVIDUAL INCOME TAX IF:

(1)     AT LEAST 90% OF THE INDIVIDUAL'S TAXABLE INCOME IS ALSO
TAXABLE BY ANOTHER STATE; AND

(2)      THE UNDERESTIMATION IS OF THE COUNTY INCOME TAX ONLY.

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:

(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, REDUCED BY THE
CREDIT ALLOWED UNDER § 10-703 OF THIS ARTICLE.

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