2. $43.20 FOR A TAXABLE YEAR BEGINNING AFTER
DECEMBER 31, 2000 BUT BEFORE JANUARY 1, 2002; AND

3. $57 FOR A TAXABLE YEAR BEGINNING AFTER DECEMBER

31, 2001.

(2) OF THE AMOUNT DETERMINED UNDER PARAGRAPH (1) OF THIS
SUBSECTION, AN INDIVIDUAL WHO IS A NONRESIDENT OR IS A RESIDENT OF THE
STATE FOR ONLY A PART OF THE YEAR IS ALLOWED ONLY A FRACTION:

(I) THE NUMERATOR OF WHICH IS THE INDIVIDUAL'S MARYLAND
ADJUSTED GROSS INCOME; AND

(II) THE DENOMINATOR OF WHICH IS THE INDIVIDUAL'S FEDERAL
ADJUSTED GROSS INCOME.

(B) AN INDIVIDUAL MAY CLAIM A CREDIT AGAINST THE COUNTY INCOME TAX
FOR A TAXABLE YEAR IN AN AMOUNT EQUAL TO THE LESSER OF:

(1) THE COUNTY INCOME TAX FOR THE TAXABLE YEAR; AND

(2) THE PRODUCT OF MULTIPLYING $1,200 TIMES THE COUNTY INCOME
TAX RATE FOR THE TAXABLE YEAR.

10-908.

(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) the top marginal State income tax rate for individuals under §
10-105(a) of this title applied to the payment; and

(2) the county income tax rate applied to [5% of] the payment.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - Tax - General

2-607.

(b) If the county income tax rate for a county is less than [2.5%] 2.6%, the
amount determined under subsection (a)(1) of this section shall be multiplied by a
fraction:

(1) the numerator of which is [2.5%] 2.6%; and

(2) the denominator of which is the county income tax rate for the county.
10-106. 

(a) (3) (i) A county may not increase its county income tax rate above
[2.5%] 2.6% until after the county has held a public hearing on the proposed act,
ordinance, or resolution to increase the rate.