H.B. 376

VETOES

Article - Tax - General

10-703.2.

(A)     IN THIS SECTION, "INSTALLMENT SALE" HAS THE MEANING STATED IN §
453(B) OF THE INTERNAL REVENUE CODE.

(B)      A CREDIT AGAINST THE STATE INCOME TAX IN THE AMOUNT
DETERMINED UNDER SUBSECTION (C) OF THIS SECTION MAY BE CLAIMED BY A
RESIDENT WHO RECOGNIZES INCOME FOR THE CURRENT TAXABLE YEAR FOR
FEDERAL INCOME TAX PURPOSES FROM AN INSTALLMENT SALE OF PROPERTY
LOCATED IN A STATE OTHER THAN MARYLAND IF:

(1)      THE DISPOSITION OF THE PROPERTY OCCURRED IN AN EARLIER
TAXABLE YEAR; AND

(2)      THE TAXPAYER PAID STATE TAX ON INCOME FOR THE EARLIER
TAXABLE YEAR TO THE STATE WHERE THE PROPERTY WAS LOCATED ON THE
INCOME THAT FOR FEDERAL INCOME TAX PURPOSES IS RECOGNIZED IN THE
CURRENT TAXABLE YEAR.

(C)     THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION IS EQUAL
TO THE INCOME RECOGNIZED FOR FEDERAL INCOME TAX PURPOSES FOR THE
CURRENT YEAR ON WHICH STATE INCOME TAX WAS PAID TO ANOTHER STATE IN
AN EARLIER YEAR, AS DESCRIBED IN SUBSECTION (B)(2) OF THIS SECTION,
MULTIPLIED BY THE LESSER OF:

(1)      THE RATE OF TAX IMPOSED BY THE OTHER STATE ON THE INCOME
DESCRIBED IN SUBSECTION (B)(2) OF THIS SECTION; OR

(2)      THE MAXIMUM RATE OF MARYLAND STATE INCOME TAX.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1997 and shall be applicable to all taxable years beginning after December 31,
1996.

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 376.

This bill makes numerous modifications to the vision standards under the Maryland
Vehicle Law, and authorizes the Motor Vehicle Administration to issue a restricted
license to those applicants with at least 20/40 visual acuity in one or both eyes.

Senate Bill 303, which was passed by the General Assembly and signed by me on May 8,

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