H.B. 81                                                         VETOES

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 (3) 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, 3007, THE
FOLLOWING PERCENTAGE OF MILITARY RETIREMENT INCOME RECEIVED BY AN
INDIVIDUAL DURING A TAXABLE YEAR IS SUBTRACTED UNDER SUBSECTION (A) OF
THIS SECTION:

(I) 30% FOR A TAXABLE YEAR ENDING AFTER DECEMBER 31, 2002
AND BEGINNING BEFORE JANUARY 1, 3001;

(II) 40% FOR A TAXABLE YEAR ENDING AFTER DECEMBER 31, 2003
AND BEGINNING BEFORE JANUARY 1, 3005;

(III) 60% FOR A TAXABLE YEAR ENDING AFTER DECEMBER 31, 2004
AND BEGINNING BEFORE JANUARY 1, 3006; AND

(IV) 80% FOR A TAXABLE YEAR ENDING AFTER DECEMBER 31, 2005
AND BEGINNING BEFORE JANUARY 1, 3007.

10-209.

(a) In this section:

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