PARRIS N. GLENDENING, Governor

Ch. 603

Article - Tax - General

10-819.

(a)     Each limited liability company as defined under Title 4A of the Corporations
and Associations Article shall file an income tax return UNLESS IT HAS ONLY ONE
MEMBER AND IT IS DISREGARDED AS AN ENTITY SEPARATE FROM ITS MEMBER FOR.
FEDERAL INCOME TAX PURPOSES.

(b)     (1) If the limited liability company is [taxable] CLASSIFIED as a
partnership, as defined in § 761 of the Internal Revenue Code, it shall file a partnership
tax return.

(2) If the limited liability company is [taxable] CLASSIFIED as a
corporation under Chapter 1, Subchapter C OR SUBCHAPTER S of the Internal Revenue
Code, it shall file [a] THE APPROPRIATE corporate tax return.

(C) IF THE LIMITED LIABILITY COMPANY HAS ONLY ONE MEMBER AND IT IS
DISREGARDED AS AN ENTITY SEPARATE FROM ITS MEMBER FOR FEDERAL INCOME
TAX PURPOSES, THE PROFIT OR LOSS OF THE LIMITED LIABILITY COMPANY SHALL
BE REFLECTED ON THE INCOME TAX RETURN FILED BY THE MEMBER OF THE
LIMITED LIABILITY COMPANY.

Article - Transportation

13-810.

(c)     On transfer of a vehicle titled in this State and issuance of a subsequent
certificate of title, the vehicle is exempt from the excise tax imposed by this part, if it is:

(1)     A vehicle transferred to a spouse, son, daughter, grandchild, parent,
sister, brother, grandparent, father-in-law, mother-in-law, son-in-law, or
daughter-in-law of the transferor, and no money or other valuable consideration is
involved in the transfer;

(2)     A vehicle repossessed under a security agreement, unless the sale of the
vehicle is required under the agreement;

(3)     A vehicle transferred from an individual to a partnership, LIMITED
LIABILITY COMPANY, or corporation or from a partnership, LIMITED LIABILITY
COMPANY, or corporation to a subpartnership, SUBSIDIARY LIMITED LIABILITY
COMPANY, or subsidiary corporation, if the individual, [partner] PARTNERSHIP,
LIMITED LIABILITY COMPANY, or corporation is a partner, MEMBER, or principal
stockholder of the newly formed partnership, subpartnership, LIMITED LIABILITY
COMPANY, SUBSIDIARY LIMITED LIABILITY COMPANY, corporation, or subsidiary
corporation, as the case may be;

(4)     A vehicle transferred to a legal heir, legatee, or distributee;

(5)     A vehicle involuntarily transferred as a result of divorce or separation
proceedings;

- 3325 -