PARRIS N. GLENDENING, Governor                          H.B. 1154

TWO OF THE FACTORS ARE MISSING, THE REMAINING FACTOR IS THE
APPORTIONMENT PERCENTAGE. A FACTOR IS MISSING IF BOTH ITS NUMERATOR
AND DENOMINATOR ARE ZERO, BUT IT IS NOT MISSING MERELY BECAUSE ITS
NUMERATOR IS ZERO.

(3) EACH FACTOR SHALL BE COMPUTED ACCORDING TO THE METHOD
OF ACCOUNTING (CASH OR ACCRUAL BASIS) USED BY THE BANK OR TRUST
COMPANY FOR THE TAXABLE YEAR.

(4) IF THE ALLOCATION AND APPORTIONMENT PROVISIONS OF THIS
SECTION DO NOT FAIRLY REPRESENT THE EXTENT OF THE BANK OR TRUST
COMPANY'S BUSINESS ACTIVITY IN Tins STATE, THE BANK OR TRUST COMPANY MAY
PETITION FOR OR THE COMPTROLLER MAY REQUIRE, IN RESPECT TO ALL OR ANY
PART OF THE BANK OR TRUST COMPANY'S BUSINESS ACTIVITY, IF REASONABLE:

(I) SEPARATE ACCOUNTING;

(II) THE EXCLUSION OF ONE OR MORE OF THE FACTORS;

(III) THE INCLUSION OF ONE OR MORE ADDITIONAL FACTORS
WHICH WILL FAIRLY REPRESENT THE BANK OR TRUST COMPANY'S BUSINESS
ACTIVITY IN THIS STATE; OR

(IV) THE EMPLOYMENT OF ANY OTHER METHOD TO EFFECTUATE
AN EQUITABLE ALLOCATION AND APPORTIONMENT OF THE BANK OR TRUST
COMPANY'S INCOME.

(C) (1) THE RECEIPTS FACTOR IS A FRACTION, THE NUMERATOR OF WHICH
IS THE RECEIPTS OF THE BANK OR TRUST COMPANY IN THIS STATE DURING THE
TAXABLE YEAR AND THE DENOMINATOR OF WHICH IS THE RECEIPTS OF THE BANK
OR TRUST COMPANY WITHIN AND WITHOUT THIS STATE DURING THE TAXABLE
YEAR. THE METHOD OF CALCULATING RECEIPTS FOR PURPOSES OF THE
DENOMINATOR IS THE SAME AS THE METHOD USED IN DETERMINING RECEIPTS
FOR PURPOSES OF THE NUMERATOR. THE RECEIPTS FACTOR SHALL INCLUDE ONLY
THOSE RECEIPTS DESCRIBED HEREIN WHICH CONSTITUTE BUSINESS INCOME AND
ARE INCLUDED IN THE COMPUTATION OF THE APPORTIONABLE INCOME BASE FOR
THE TAXABLE YEAR.

(2) THE NUMERATOR OF THE RECEIPTS FACTOR INCLUDES RECEIPTS
FROM THE LEASE OR RENTAL OF REAL PROPERTY OWNED BY THE BANK OR TRUST
COMPANY IF THE PROPERTY IS LOCATED WITHIN THIS STATE OR RECEIPTS FROM
THE SUBLEASE OF REAL PROPERTY IF THE PROPERTY IS LOCATED WITHIN THIS
STATE.

(3) (I) EXCEPT AS DESCRIBED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH. THE NUMERATOR OF THE RECEIPTS FACTOR INCLUDES RECEIPTS
FROM THE LEASE OR RENTAL OF TANGIBLE PERSONAL PROPERTY OWNED BY THE
BANK OR TRUST COMPANY IF THE PROPERTY IS LOCATED WITHIN THIS STATE
WHEN IT IS FIRST PLACED IN SERVICE BY THE LESSEE.

(II) RECEIPTS FROM THE LEASE OR RENTAL OF TRANSPORTATION
PROPERTY OWNED BY THE BANK OR TRUST COMPANY ARE INCLUDED IN THE

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