(C) (1) The credit allowed under this section may not be

CLAIMED BY:

(I) A FIDUCIARY; OR

(II) AN INDIVIDUAL WHO MAY BE CLAIMED AS A DEPENDENT
ON ANOTHER INDIVIDUAL'S TAX RETURN.

(2) OF THE CREDIT ALLOWED UNDER THIS SECTION, AN
INDIVIDUAL WHO IS A NONRESIDENT OR IS A RESIDENT OF THE STATE FOR
ONLY A PART OF THE YEAR SHALL BE ALLOWED 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.

10-908.

(d)       A payor shall withhold from a payment subject to withholding of
winnings derived from wagering:

(1)       if the payee is a resident, a rate equal to the sum of 3.0% and the
top marginal State income tax rate for individuals under § 10-105(a) of this title,
applied to the payment; and

(2)       if the payee is a nonresident, a rate equal to the sum of the rate of
the tax imposed under § 10-106.1 of this title and the top marginal State income tax
rate for individuals under § 10-105(a) of this title, applied to the payment.

(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] 4.75% OF the payment; and

(2)       the county income tax rate applied to the payment.

(f)        If a payment to a resident payee is a designated distribution that is an
eligible rollover distribution within the meaning of § 3405(c) of the Internal Revenue
Code and the payment is subject to mandatory withholding of federal income tax, the
payor shall withhold from the payment [the sum of 3% and the top marginal State

- 62 -

Ch. 3

2007 Laws of Maryland