H.B. 753                                                 VETOES

2-614.

After making the distribution required under f§ 2-613] §§ 2-613 AND 2-613.1 of
this subtitle, the Comptroller shall distribute monthly 24% of the remaining income
tax revenue from corporations to the Gasoline and Motor Vehicle Revenue Account in
the Transportation Trust Fund.

2-615.

After making the distributions required under §§ 2-613 [and] THROUGH 2-614
of this subtitle, the Comptroller shall distribute the remaining income tax revenue
from corporations to the General Fund of the State.

10-101.

(j) (1) "State income tax" means the State tax on income imposed under this
title.

(2) "STATE INCOME TAX" INCLUDES THE SURCHARGE ON INCOME OF
CORPORATIONS IMPOSED UNDER § 10-102(2) OF THIS SUBTITLE.

10-102.

Except as provided in § 10-104 of this subtitle[,]:

(1) a tax is imposed on the Maryland taxable income of each individual
and of each corporation; AND

(2) FOR A TAXABLE YEAR BEGINNING AFTER DECEMBER 31, 2002 BUT
BEFORE JANUARY 1, 2006, IN ADDITION TO THE TAX IMPOSED UNDER ITEM (1) OF
THIS SECTION, A SURCHARGE IS IMPOSED ON THE MARYLAND TAXABLE INCOME OF
EACH CORPORATION.

10-104.

The income tax does not apply to the income of:

(1)     a common trust fund, as defined in § 3-501(b) of the Financial
Institutions Article;

(2)    except as provided in §§ 10-101(c-l)(3) and 10-304(2) of this title, an
organization that is exempt from taxation under § 408(e)(1) or § 501 of the Internal
Revenue Code;

(3)     a financial institution that is subject to the financial institution
franchise tax;

(4)     a person subject to taxation under Title 6 of the Insurance Article;

(5)     except as provided in § 10-102,1 of this subtitle, a partnership, as
defined in § 761 of the Internal Revenue Code;

(6)     except as provided in § 10-102.1 of this subtitle and § 10-304(3) of
this title, an S corporation;

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