ROBERT L. EHRLICH, JR., Governor                           H.B. 753

the General Assembly, a comprehensive report on the use of single sales factor
apportionment by manufacturing corporations that provides, at a minimum:

1. the number of corporations filing tax returns for the
taxable year that ended during the preceding calendar year that use single sales
factor apportionment and the number of such corporations having a Maryland income
tax liability for that taxable year;

2. the number of corporations paying less in Maryland
income tax for that taxable year as a result of using single sales factor apportionment
and the aggregate amount of Maryland income tax savings for all such corporations
for that taxable year as a result of using single sales factor apportionment; and

3. the number of corporations paying more in Maryland
income tax for the taxable year as a result of using single sales factor apportionment
and the aggregate amount of additional Maryland income tax owed by those
corporations for the taxable year as a result of using single sales factor
apportionment.

[(3)] (5) The property factor under paragraph [(1)] (3) of this subsection
shall include:

(i) rented and owned real property; and

(ii) tangible personal property located in the State and used in the
trade or business.

(6) (I) SALES OF TANGIBLE PERSONAL PROPERTY SHALL BE
INCLUDED IN THE NUMERATOR OF THE SALES FACTOR UNDER PARAGRAPH (3) OR
PARAGRAPH (4) OF THIS SUBSECTION IF:

1.       THE PROPERTY IS DELIVERED OR SHIPPED TO A
PURCHASER WITHIN THE STATE, REGARDLESS OF THE F.O.B. POINT OR OTHER
CONDITIONS OF THE SALE; OR

2.       THE PROPERTY IS SHIPPED FROM AN OFFICE, STORE,
WAREHOUSE, FACTORY, OR OTHER PLACE OF STORAGE IN THIS STATE AND THE
CORPORATION IS NOT TAXABLE IN THE STATE OF THE PURCHASER

(II) FOR PURPOSES OF SUBPARAGRAPH (I) OF THIS PARAGRAPH, A
CORPORATION IS TAXABLE IN A STATE IF:

1. IN THAT STATE THE CORPORATION IS SUBJECT TO A NET
INCOME TAX, A FRANCHISE TAX MEASURED BY NET INCOME, A FRANCHISE TAX FOR
THE PRIVILEGE OF DOING BUSINESS, OR A CORPORATE STOCK TAX; OR

2. THAT STATE HAS JURISDICTION TO SUBJECT THE
TAXPAYER TO A NET INCOME TAX, REGARDLESS OF WHETHER, IN FACT, THE STATE
IMPOSES A TAX.

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