Ch. 630                                    1997 LAWS OF MARYLAND

provider's monthly billing that the public service company franchise tax line item is not a
tax increase but merely a disclosure of taxes presently and previously paid by the
customer.

SECTION 3. AND BE IT FURTHER ENACTED, That the General Assembly finds
that the actual fiscal impact of this Act will depend on the attainment of corporate income tax
revenues and the amount of the credit against the State income tax taken by companies, and
that corporate income tax revenues fluctuate from year to year and are difficult to project. In
this regard, the Comptroller of the Treasury and the Department of Assessments and Taxation
shall submit a report to the House Committee on Ways and Means and the Senate Budget and
Taxation Committee disclosing for tax year 1998, for public utilities that are
telecommtinications companies, the corporate income tax revenues collected and the amount
of corporate income fax credits taken, attributable to this Act. The report shall be submit fed on
or before November 15, 1999.

SECTION 4. 3. 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act
shall take effect January 1, 1998. The changes to the public service company franchise tax
and the income tax under Section 1 of this Act shall be applicable to all taxable years
beginning after December 31, 1997; provided, however, that the income tax credit allowed
under § 10-708 of the Tax - General Article shall be allowed only for property tax paid
for a property tax year beginning on or after July 1, 1998. The changes to the Property Tax
Tax - Property Article under Section 1 of this Act shall be applicable to all property tax
years beginning on or after July 1, 1998.

SECTION 5. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall
take effect January 1, 2000.

SECTION 6. 4. 5. AND BE IT FURTHER ENACTED, That Section 3 2 Sections 2
and 3 of this Act shall take effect July 1, 1997.

Approved May 22, 1997.

CHAPTER 630

(House Bill 512)

AN ACT concerning

Telecommunications Tax Reform

FOR the purpose of excluding certain gross charges from the definition of "gross receipts "
subject to the public service company franchise tax; altering the definitions of "public
service company" and "gross receipts" under the public service company franchise
tax; defining "telecommunications service" for purposes of the public service
company franchise tax; altering the public service company franchise tax rate for a
person providing a telecommunications service in the State; providing that the
public service company franchise tax with respect to gross receipts from
telecommunications service shall be added to and disclosed as an element of the
charge to the customer for the service; limiting a certain subtraction modification

- 3518 -