PARRIS N. GLENDENING, Governor                          H.B. 1154

THE ASSET OR ACTIVITY ARE ESTABLISHED. UNLESS THE BANK OR TRUST COMPANY
DEMONSTRATES TO THE CONTRARY, SUCH POLICIES AND GUIDELINES SHALL BE
PRESUMED TO BE ESTABLISHED AT THE COMMERCIAL DOMICILE OF THE BANK OR
TRUST COMPANY.

(14) THE NUMERATOR OF THE RECEIPTS FACTOR INCLUDES ALL OTHER
RECEIPTS NOT OTHERWISE APPORTIONED UNDER THIS SUBSECTION IF THE
INCOME PRODUCING ACTIVITY IS PERFORMED IN THIS STATE. IF THE
INCOME PRODUCING ACTIVITY IS PERFORMED BOTH WITHIN THIS STATE AND ONE
OR MORE OTHER STATES, THE RECEIPTS DESCRIBED IN THIS PARAGRAPH ARE
INCLUDED IN THE NUMERATOR OF THE RECEIPTS FACTOR IF MORE THAN 50% OF
THE INCOME PRODUCING ACTIVITY IS PERFORMED WITHIN THIS STATE. IF MORE
THAN 50% OF THE INCOME PRODUCING ACTIVITY IS NOT PERFORMED WITHIN ANY
ONE STATE, THEN THE RECEIPTS DESCRIBED IN THIS PARAGRAPH SHALL BE
INCLUDED IN THE NUMERATOR OF THE RECEIPTS FACTOR IF THE BANK OR TRUST
COMPANY'S COMMERCIAL DOMICILE IS IN THIS STATE.
(15) ALL RECEIPTS WHICH WOULD BE ASSIGNED UNDER THIS
SUBSECTION TO A STATE IN WHICH THE BANK OR TRUST COMPANY IS NOT TAXABLE
SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FACTOR, IF THE BANK
OR TRUST COMPANY'S COMMERCIAL DOMICILE IS IN THIS STATE.
(D) (1) THE PROPERTY FACTOR IS A FRACTION, THE NUMERATOR OF
WHICH IS THE AVERAGE VALUE OF REAL PROPERTY AND TANGIBLE PERSONAL
PROPERTY RENTED TO THE BANK OR TRUST COMPANY THAT IS LOCATED OR USED
WITHIN THIS STATE DURING THE TAXABLE YEAR, THE AVERAGE VALUE OF THE
BANK OR TRUST COMPANY REAL AND TANGIBLE PERSONAL PROPERTY OWNED
THAT IS LOCATED OR USED WITHIN THIS STATE DURING THE TAXABLE YEAR, AND
THE AVERAGE VALUE OF THE BANK OR TRUST COMPANY'S LOANS AND CREDIT
CARD RECEIVABLES THAT ARE LOCATED WITHIN THIS STATE DURING THE
TAXABLE YEAR, AND THE DENOMINATOR OF WHICH IS THE AVERAGE VALUE OF
ALL SUCH PROPERTY LOCATED OR USED WITHIN AND WITHOUT THIS STATE
DURING THE TAXABLE YEAR.

(2) THE PROPERTY FACTOR SHALL INCLUDE ONLY PROPERTY THE
INCOME OR EXPENSES OF WHICH ARE INCLUDED (OR WOULD HAVE BEEN
INCLUDED IF NOT FULLY DEPRECIATED OR EXPENSED, OR DEPRECIATED OR
EXPENSED TO A NOMINAL AMOUNT) IN THE COMPUTATION OF THE
APPORTIONABLE INCOME BASE FOR THE TAXABLE YEAR.

(3) (I) THE VALUE OF REAL PROPERTY AND TANGIBLE PERSONAL
PROPERTY OWNED BY THE BANK OR TRUST COMPANY IS THE ORIGINAL COST OR
OTHER BASIS OF SUCH PROPERTY FOR FEDERAL INCOME TAX PURPOSES WITHOUT
REGARD TO DEPLETION, DEPRECIATION OR AMORTIZATION-

(II) LOANS ARE VALUED AT THEIR OUTSTANDING PRINCIPAL
BALANCE, WITHOUT REGARD TO ANY RESERVE FOR BAD DEBTS. IF A LOAN IS
CHARGED OFF IN WHOLE OR IN PART FOR FEDERAL INCOME TAX PURPOSES, THE
PORTION OF THE LOAN CHARGED OFF IS NOT OUTSTANDING. A SPECIFICALLY

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