H.B. 1154                                                VETOES'

(a)     Personal property is not subject to valuation or to property tax, if the personal
property is owned by an institution that is subject to the financial institution franchise tax
under Title 8, Subtitle 2 of the Tax - General Article.

(b)     This exemption does not include any personal property that is leased, loaned,
or made available by the institution for the use of a person whose business is not that of
the institution.

(C) FOR ANY TAXABLE YEAR BEGINNING AFTER. JUNE 30, 1999 1998, THE
EXEMPTION UNDER THIS SECTION DOES NOT APPLY TO A COMMERCIAL BANK,
SAVINGS BANK, TRUST COMPANY, OR COMPANY THAT SUBSTANTIALLY COMPETES
WITH NATIONAL BANKS IN THE STATE.
(D) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, EXCEPT AS
PROVIDED IN § 7-221.1 OF THIS SUBTITLE, FOR A COMMERCIAL BANK, SAVINGS BANK,
TRUST COMPANY, OR COMPANY THAT SUBSTANTIALLY COMPETES WITH NATIONAL
BANKS IN THE STATE, THE PERSONAL PROPERTY DESCRIBED IN SUBSECTION (A) OF
THIS SECTION IS SUBJECT TO PROPERTY TAX:

(1) ON 50% OF ITS ASSESSMENT FOR THE TAXABLE YEAR BEGINNING
ON JULY 1, 1997 1996: AND

(2) ON 75% OF ITS ASSESSMENT FOR THE TAXABLE YEAR BEGINNING
ON JULY 1, 1998 1997.

7-221.1.

(A) IN THIS SECTION, "BANK OR TRUST COMPANY" MEANS:

(1) A COMMERCIAL BANK;

(2) A SAVINGS BANK;

(3) A TRUST COMPANY; OR

(4) A COMPANY THAT SUBSTANTIALLY COMPETES WITH NATIONAL
BANKS IN THE STATE.

(B) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION, PERSONAL
PROPERTY IS NOT SUBJECT TO VALUATION OR TO PROPERTY TAX, IF THE
PERSONAL PROPERTY:

(1) IS OWNED BY A BANK OR TRUST COMPANY AND IS USED IN
CONNECTION WITH THE TRADE OR BUSINESS PROCESSING OF DEPOSITS OR LOANS OF
THE BANK OR TRUST COMPANY; AND

(2) IS A COMPUTER PROGRAM, AS DEFINED IN § 11-225(A) OF THE TAX -
GENERAL ARTICLE, OR COMPUTER HARDWARE; AND

(3) IS NOT USED IN CONNECTION WITH WORD PROCESSING.

- 4314 -