WILLIAM DONALD SCHAEFER, Governor                            Ch. 1

13-602.

[(a)] A tax collector shall assess interest on unpaid tax from the due date to the
date on which the tax is paid if a person who is required to estimate and pay financial
institution franchise tax, PUBLIC SERVICE COMPANY FRANCHISE TAX, or income
tax under [§ 8-209, § 10-815, or § 10-816] § 8-210(B), § 8-405(B), OR § 10-902 of this
article:

(1)     fails to pay an installment when due; or

(2)     estimates a tax that is:

(i) less than 90% of the tax required to be shown on the return for the
current taxable year; and

(ii) less than the tax paid for the prior taxable year.

[(b) The Department shall assess interest on the difference between 45% of the
tax due for a year and the estimated tax paid from the date on which the estimated tax is
due to the date the estimated tax is paid, if a person who is required to estimate and pay
public service company franchise tax under § 8-404(b) of this article:

(1)     fails to pay the estimated tax when due; or

(2)     estimates a tax that is less than 90% of the tax required to be shown on
the return for the current taxable year.]

13-702.

[(a)]A tax collector shall assess a penalty not exceeding 25% of the amount
underestimated, if a person who is required to estimate and pay financial institution
franchise tax, PUBLIC SERVICE COMPANY FRANCHISE TAX, or income tax under
§ 8-210(b), § 8-405(B), or § 10-902 of this article:

(1)     fails to pay an installment when due; or

(2)     estimates a tax that is:

(i) less than 90% of the tax required to be shown on the return for the
current taxable year; and

(ii) less than the tax paid for the prior taxable year.

[(b) A tax collector shall assess a penalty not exceeding 25% of the amount
underestimated, if a person who is required to estimate and pay public service company
franchise tax under § 8-404(b) of this article:

(1)     fails to pay an installment when due; or

(2)     estimates a tax that is less than 90% of the tax required to be shown on
the return for the current taxable year.]

SECTION 7. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

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