Ch. 94                                      2003 LAWS OF MARYLAND

General Assembly; providing for the termination of this Act; and generally
relating to a Task Force to Study the Financial Impact of Retired Military
Service Personnel on the Economy of the State,

BY repealing and reenacting, without amendments,
Article—Tax—General
Section 10-207(a)
Annotated Code of Maryland
(1997 Replacement Volume and 2002 Supplement)

BY repealing and reenacting, with amendments,
Article—Tax—General
Section 10-207(q) and 10-209
Annotated Code of Maryland
(1997 Replacement Volume and 2002 Supplement)

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

Article—Tax—General

10-207.

(a) To the extent included in federal adjusted gross income, the amounts under
this section are subtracted from the federal adjusted gross income of a resident to
determine Maryland adjusted gross income.

(q) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
SUBSECTION, THE subtraction under subsection (a) of this section includes [the first
$2,500 of military retirement income received by an individual during the taxable
year, if the individual:

(i) is at least 55 years old on the last day of the taxable year; and

(ii) was an enlisted member of the military at the time of
retirement.

(2) The amount of the subtraction under paragraph (1) of this subsection:

(i) is reduced by 50% of the amount by which federal adjusted
gross income exceeds $17,500; and

(ii) is reduced to zero if federal adjusted gross income exceeds
$22,500] 100% OF MILITARY RETIREMENT INCOME RECEIVED BY AN INDIVIDUAL
DURING THE TAXABLE YEAR.

(2) FOR A TAXABLE YEAR BEGINNING BEFORE JANUARY 1, 2008, THE
FOLLOWING PERCENTAGE OF MILITARY RETIREMENT INCOME RECEIVED BY AN
INDIVIDUAL DURING A TAXABLE YEAR IS SUBTRACTED UNDER SUBSECTION (A) OF
THIS SECTION;

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