|
Ch. 127
1995 LAWS OF MARYLAND
(E) (1) THE PAYROLL FACTOR IS A FRACTION, THE NUMERATOR OF WHICH
IS THE TOTAL AMOUNT PAID IN THIS STATE DURING THE TAXABLE YEAR BY THE
FINANCIAL INSTITUTION FOR COMPENSATION AND THE DENOMINATOR OF WHICH
IS THE TOTAL COMPENSATION PAID BOTH WITHIN AND WITHOUT THIS STATE
DURING THE TAXABLE YEAR. THE PAYROLL FACTOR SHALL INCLUDE ONLY THAT
COMPENSATION WHICH IS INCLUDED IN THE COMMUTATION OF THE
APPORTIONABLE INCOME TAX BASE FOR THE TAXABLE YEAR.
(2) PAYMENTS MADE TO ANY INDEPENDENT CONTRACTOR OR ANY
OTHER PERSON NOT PROPERLY CLASSIFIABLE AS AN EMPLOYEE SHALL BE
EXCLUDED FROM BOTH THE NUMERATOR AND DENOMINATOR OF THE FACTOR.
(3) COMPENSATION IS PAID IN THIS STATE IF ANY ONE OF THE
FOLLOWING TESTS, APPLIED CONSECUTIVELY, IS MET;
(I) THE EMPLOYEE'S SERVICES ARE PERFORMED ENTIRELY
WITHIN THIS STATE.
(II) THE EMPLOYEE'S SERVICES ARE PERFORMED BOTH WITHIN
AND WITHOUT THE STATE, BUT THE SERVICE PERFORMED WITHOUT THE STATE IS
INCIDENTAL TO THE EMPLOYEE'S SERVICE WITHIN THE STATE. THE TERM
"INCIDENTAL" MEANS ANY SERVICE WHICH IS TEMPORARY OR TRANSITORY IN
NATURE, OR WHICH IS RENDERED IN CONNECTION WITH AN ISOLATED
TRANSACTION.
(III) IF THE EMPLOYEE'S SERVICES ARE PERFORMED BOTH WITHIN
AND WITHOUT THIS STATE, THE EMPLOYEE'S COMPENSATION WILL BE ATTRIBUTED
TO THIS STATE;
1. IF THE EMPLOYEE'S PRINCIPAL BASE OF OPERATION IS
WITHIN THIS STATE; OR
2. IF THERE IS NO PRINCIPAL BASE OF OPERATIONS IN
ANOTHER STATE IN WHICH SOME PART OF THE SERVICES ARE PERFORMED, BUT
THE PLACE FROM WHICH THE SERVICES ARE DIRECTED OR CONTROLLED IS IN THIS
STATE; OR
3. IF THE PRINCIPAL BASE OF OPERATIONS AND THE PLACE
FROM MUCH THE SERVICES ARE DIRECTED OR CONTROLLED ARE NOT IN
ANOTHER STATE IN WHICH SOME PART OF THE SERVICE IS PERFORMED BUT THE
EMPLOYEE'S RESIDENCE IS IN THIS STATE.
[(b)](F) In-computing taxable not earnings, a financial institution shall include
only that part of interest derived from the trade or business, in this State, of the
subsidiaries of the financial institution, if the financial institution is a holding company
because its only activities are to:
(1) maintain and manage intangible investments; and
(2) collect and distribute income from intangible investments.
- 1724 -
|
