PARRIS N. GLENDENING, Governor

Ch. 4

(2) if the payee is a nonresident, [5% of] THE TOP MARGINAL STATE
INCOME TAX RATE FOR INDIVIDUALS UNDER § 10-105(A)(4) OF THIS TITLE, APPLIED

TO the payment.

(e) The Board of Trustees of the State Retirement and Pension System shall
withhold from a payment of a death benefit to a resident payee the sum of:

(1) [5% of] THE TOP MARGINAL STATE INCOME TAX RATE FOR
INDIVIDUALS UNDER § 10-105(A)(4) OF THIS TITLE APPLIED TO the payment; and

(2) the TOP MARGINAL county income tax rate applied to [5% of] the

payment.

SECTION 2. AND BE IT FURTHER ENACTED, That for calendar year 1998, the
top marginal county income tax rate in each county, including Baltimore City, shall be 5%
multiplied times the county income tax rate of at least 20% but not more than 60% as set
by the county in accordance with § 10-106 of the Tax—General Article in effect before
the effective date of this Act.

SECTION 3. AND BE IT FURTHER ENACTED, That the Comptroller shall
issue new employer withholding tables, to be effective January 1 of each taxable year,
reflecting the income tax rate reduction for that taxable year as enacted under Section 1
of this Act.

SECTION 4. AND BE IT FURTHER ENACTED, That the General Assembly at
the 1999 legislative session shall review the report of the Task Force on Maryland's Fiscal
Structure and determine whether the General Fund appropriations for Fiscal Year 2000
and the General Fund appropriations projected for Fiscal Year 2001 and Fiscal Year
2002 can be accommodated within the level of General Fund revenues projected for these
years. In making this determination, the General Assembly shall use the revenue
forecasts of the Board of Revenue Estimates and the expenditure forecasts of the
Department of Fiscal Services.

10-106.

(a) (1) Each county shall set, by ordinance or resolution, a county income tax equal
to at least 20% but not more than 60%, to be applied to the State income tax for an individual,
MODIFIED AS PROVIDED UNDER SUBSECTION (D) OF THIS SECTION.

(D) FOR PURPOSES OF DETERMINING THE COUNTY INCOME TAX, THE STATE
INCOME TAX SHALL BE CALCULATED BY:

(1) USING A STATE TAX RATE OF 5% FOR MARYLAND TAXABLE INCOME IN
EXCESS OF $3,000 INSTEAD OF THE MARGINAL STATE TAX RATE FOR INDIVIDUALS
SPECIFIED UNDER § 10-105(A)(4) OF THIS SUBTITLE;

(2) ALLOWING A MAXIMUM OF $1,200 INSTEAD OF THE MAXIMUM AMOUNT

SPECIFIED UNDER § 10-207(R) OF THIS TITLE FOR THE SUBTRACTION MODIFICATION FOR

TWO-INCOME MARRIED COUPLES; AND

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