PARRIS N. GLENDENING, Governor

Ch. 4

CHAPTER 4
(House Bill 511)

AN ACT concerning

Income Tax Reform 1997 Tax Reduction Act

FOR the purpose of altering a certain tax rate under the Maryland income tax on
individuals; altering the amount that an individual may deduct for certain exemptions to
determine Maryland taxable income for purposes of the State income tax; altering the
maximum amount of a certain subtraction modification for two-income married couples
filing joint returns; altering the calculation of the county income tax; altering a
requirement that the Comptroller prepare certain income tax tables; altering the
rate of a certain tax imposed on certain entities; altering certain requirements for
withholding from certain payments; requiring the Comptroller to design the returns and
other forms under the income tax in a certain manner; providing a credit against the
sales and use tax for certain sales and use tax paid on certain tangible personal property;
defining certain terms; altering certain definitions under the sales and use tax; altering an
exemption under the sales and use tax for certain property used in a production activity;
providing for the effective dates of this Act; providing for the termination of part of this
Act; altering the calculation of a certain required distribution of income tax
revenues to certain special taxing districts and municipal corporations; providing an
addition modification under certain circumstances relating to certain changes to the
Internal Revenue Code; reducing the amount allowed for personal exemptions
under certain circumstances; establishing a Task Force on Maryland's Fiscal
Structure; establishing the membership, duties, purposes, and staffing of the Task
Force; requiring the Task Force to submit a certain report to certain persons by
certain dates; providing for the termination of the Task Force; requiring the
General Assembly to make a certain determination; allowing an individual a credit
against the State income tax in certain amounts for each child under a certain age
for whom the individual is allowed to deduct an exemption; providing for certain per
child credit amounts based on an individual's federal adjusted gross income; making
the credit refundable under certain circumstances; providing a certain prorated
credit for nonresidents and individuals filing returns for a period of less than 1 year;
requiring the Comptroller to issue certain income tax withholding tables reflecting
the income tax rate reduction under this Act; providing for the application of this
Act; and generally relating to State and county income taxes.

BY repealing and reenacting, with amendments,
Article - Tax - General

Section 2-106, 2-607, 10-102.1(d)(l), 10-103(a), 10-105(a), 10-106(a)(1),
10-207(r), 10-211, 10-604, 10-704, 10-706(c), and 10-908(d) and (e),
11-101(d), (f)(3)(ii), and (l)(3)(ii), and 11-210(b)(1)

Annotated Code of Maryland

(1988 Volume and 1996 Supplement)

BY repealing and reenacting, without amendments,

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