WILLIAM DONALD SCHAEFER, Governor                            Ch. 1

(2) THE DENOMINATOR OF WHICH IS 12.

(C) AN INDIVIDUAL WHO IS A RESIDENT FOR A PERIOD OF MORE
THAN 15 DAYS IN A MONTH IS DEEMED TO BE A RESIDENT FOR THE FULL
MONTH.

10-307.

(a) To the extent included in federal taxable income, the amounts under this
section are subtracted from the federal taxable income of a corporation to determine
Maryland modified income.

(e) The subtraction under subsection (a) of this section includes gross receipts,
less related expenses, that:

(1)     are subject to the public service company franchise tax; AND

(2)     ARE NOT DERIVED FROM LONG DISTANCE
TELECOMMUNICATIONS SERVICE, AS DEFINED UNDER § 8-401(B-l) OF
THIS ARTICLE.

10-402.

(c)     (1) If the trade or business is a unitary business, the part of the
corporation's Maryland modified income derived from or reasonably attributable to trade
or business carried on in the State shall be determined using a 3-factor [formula that
weighs property, payroll, and sales equally] APPORTIONMENT FRACTION:

(I)     THE NUMERATOR OF WHICH IS THE SUM OF THE
PROPERTY FACTOR, THE PAYROLL FACTOR, AND TWICE THE SALES
FACTOR; AND

(II)    THE DENOMINATOR OF WHICH IS 4.

(d)     To reflect clearly the income allocable to Maryland, the Comptroller may
alter, if circumstances warrant, the methods under subsections (b) and (c) of this section,
including:

(1)     the use of the separate accounting method;

(2)     the use of the 3-factor DOUBLE WEIGHTED SALES FACTOR
formula method;

(3)     the weight of any factor in the 3-factor formula;

(4)     the valuation of rented property included in the property factor; and

(5)     the determination of the extent to which tangible personal property is
located in the State.

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