Ch. 4                                       1997 LAWS OF MARYLAND

2-607.

(a) After making the distributions required under §§ 2-604 through 2-606 of this
subtitle, from the remaining income tax revenue from individuals, the Comptroller shall
distribute to each special taxing district that received an income tax revenue distribution
in fiscal year 1977 and to each municipal corporation an amount that, based on the
certification of the Comptroller as to State income tax liability and county income tax
liability of the residents of the district or municipal corporation, equals the greater of:

(1) [8.5% of the State income tax liability of those residents;

(2)] SUBJECT TO SUBSECTION (B) OF THIS SECTION, 17% of the county
income tax liability of those residents; or

[(3)](2) 0.37% of the Maryland taxable income of those residents,
DETERMINED AS PROVIDED UNDER § 10-106(D) OF THIS ARTICLE.

(B) IF THE TOP MARGINAL COUNTY INCOME TAX RATE FOR A COUNTY IS
LESS THAN 2.5% 50%, THE AMOUNT DETERMINED UNDER SUBSECTION (A)(1) OF THIS
SECTION SHALL BE MULTIPLIED BY A FRACTION:

(1)     THE NUMERATOR OF WHICH IS 2.5% 50%; AND

(2)     THE DENOMINATOR OF WHICH IS THE TOP MARGINAL COUNTY
INCOME TAX RATE FOR THE COUNTY.

[(b)](C) The Comptroller shall adjust the amount distributed under subsection
(a) of this section to a municipal corporation or special taxing district to allow for a
proportionate part of refund and interest payments for a prior calendar year made after
a distribution is made to the municipal corporation or district for that year.

10-102.1.

(d) (1) Except as provided in paragraph (2) of this subsection, the tax imposed
under subsection (b) of this section is [5% of] THE TOP MARGINAL STATE TAX RATE
FOR INDIVIDUALS UNDER § 10-105(A)(4) OF THIS SUBTITLE APPLIED TO:

(i) the sum of each nonresident partner's distributive share of a
partnership's nonresident taxable income;

(ii) the sum of each nonresident shareholder's pro rata share of an S
corporation's nonresident taxable income; or

(iii) the sum of each nonresident member's distributive share of a
limited liability company's nonresident taxable income.

10-103.

(a) Each county shall have a county income tax [measured by the State income
tax] ON THE MARYLAND TAXABLE INCOME, MODIFIED AS PROVIDED UNDER §
10-106(D) OF THIS SUBTITLE, of:

(1) each resident, other than a fiduciary, who on the last day of the taxable

year:

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