PARRIS N. GLENDENING, Governor                            H.B. 351

SECTION 6. 8. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1997.

May 22, 1997

The Honorable Casper R. Taylor, Jr.
Speaker of the House
State House
Annapolis MD 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed House Bill 351.

This bill allows taxpayers a credit against the individual income tax for income taxes paid
in prior years to another state if the taxes are attributable to income from installment
sales, and that income is recognized for federal tax purposes in the current year. The
credit is the lesser of the tax paid to the other state attributable to the income recognized
in a taxable year, or 5% of the income recognized in a taxable year.

Senate Bill 2, which was passed by the General Assembly and signed by me on May 8,
1997, accomplishes the same purpose. Therefore, it is not necessary for me to sign House

Bill 351.

Sincerely,

Parris N. Glendening

Governor

House Bill No. 351

AN ACT concerning

Income Tax - Installment Sales - Credit for Tax Paid to Another State for Earlier

Taxable Year

FOR the purpose of allowing a credit under certain circumstances against the State
income tax for certain state tax on income paid to another state for an earlier
taxable year on certain income from an installment sale that is recognized for
federal income tax purposes in the current taxable year; and providing for the
application of this Act.

BY adding to

Article - Tax - General

Section 10-703.2

Annotated Code of Maryland

(1988 Volume and 1996 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

- 4749 -