Tax - General (GTG) — Title 8. Franchise Taxes

“Financial institution” means:

“Financial institution” does not include:

a savings and loan association that:

a savings bank chartered by the Federal Home Loan Bank Board.

“Savings bank” means a company or other institution that is organized to receive deposits of money and pay interest on the deposits.

“Savings bank” does not include a bank with capital stock.

For all taxable years beginning before January 1, 2001, a franchise tax, measured by taxable net earnings, is imposed annually on each financial institution existing or doing business in the State during any part of the fiscal year of the financial institution.

For all taxable years beginning after December 31, 2000, the financial institution franchise tax is terminated, and Maryland taxable income of financial institutions shall be subject to taxation under Title 10 of this article.

based on the accounting period used as its fiscal year; and

subject to the modifications required under this section, in the manner that a corporation computes, for purposes of the income tax, the Maryland modified income.

profit realized from the sale or exchange of bonds issued by this State or a political subdivision of this State;

dividends received from foreign corporations and included in federal gross income under § 78 of the Internal Revenue Code;

interest derived from a United States obligation;

State tax–exempt interest received from a mutual fund and allowed to be subtracted under § 10–307(g)(4) of this article; and

interest excluded from federal gross income under § 103 of the Internal Revenue Code and derived from a bond:

In this section the following words have the meanings indicated.

“International banking facility” means a financial institution that:

“Liability” means the total liabilities shown in the records of an international banking facility.

deduct the qualifying amount computed under subsection (c) of this section to the extent that the amount is not deductible in computing its federal taxable income; or

add any loss computed under subsection (c) of this section to its taxable net earnings.

To compute the qualifying amount allowed under this section, an international banking facility shall determine its gross earnings derived, directly or indirectly, from any foreign exchange trading or hedging transaction that relates to making, arranging for, placing, or servicing a loan to a foreign person if:

From the gross earnings computed under paragraph (1) of this subsection, an international banking facility shall subtract all deductions or expenses, directly or indirectly, related to those gross earnings.

From the adjusted gross earnings calculated under paragraph (2) of this subsection, an international banking facility shall subtract the product of multiplying the adjusted gross earnings by a fraction:

maintain and manage intangible investments; and

collect and distribute income from intangible investments.

Each financial institution that reasonably expects its financial institution franchise tax for a year to exceed $1,000 shall complete, under oath, and file with the Department a declaration of estimated tax, on or before the 15th day of the 4th month of the accounting period used as the fiscal year of the financial institution.

A financial institution required under paragraph (1) of this subsection to file a declaration of estimated tax for a taxable year shall complete and file with the Department a quarterly estimated tax return on or before the 15th day of the 6th, 9th, and 12th months of that year.

at least 25% of the estimated financial institution franchise tax shown on the declaration or amended declaration for a taxable year:

any unpaid financial institution franchise tax for the year shown on the financial institution franchise tax return that covers that year, with the return.

child care provided or paid for by a business entity for the children of a qualified employee with a disability as provided under § 21–309 of the Education Article; or

transportation provided or paid for by the business entity for a qualified employee with a disability as provided under § 21–309 of the Education Article.

“Gross receipts” means total operating revenue.

“Gross receipts” includes:

“Gross receipts” does not include:

For a public service company engaged in a telephone business in the State, gross receipts does not include:

For a public service company engaged in the transmission, distribution, or delivery of electricity or gas in the State:

engaged in a telephone business in the State; or

engaged in the transmission, distribution, or delivery of electricity or natural gas in the State.

engaged in a telephone business in the State; or

engaged in the transmission, distribution, or delivery of electricity or natural gas in the State.

a county;

a municipal corporation;

a nonprofit electric cooperative; or

a public–private partnership formed for the generation of clean or renewable energy if:

In addition to any tax imposed under § 8-402 of this subtitle, a franchise tax is imposed for each calendar year on each public service company engaged in the transmission, distribution, or delivery of electricity or natural gas in the State.

The tax imposed under this section is measured by kilowatt hours of electricity or therms of natural gas delivered by the public service company for final consumption in the State.

a county; or

a municipal corporation.

Each public service company that reasonably expects its public service company franchise tax for a year to exceed $1,000 shall complete, under oath, and file with the Department a declaration of estimated tax, on or before April 15 of that year.

A public service company required under paragraph (1) of this subsection to file a declaration of estimated tax for a taxable year shall complete and file with the Department a quarterly estimated tax return on or before June 15, September 15, and December 15 of that year.

at least 25% of the estimated public service company franchise tax shown on the declaration or amended declaration for a taxable year:

any unpaid public service company franchise tax for the year shown on the public service company franchise tax return that covers that year, with the return.

To prevent actual multiple taxation of the sale of interstate long distance telecommunications service, a long distance telecommunications company, upon proof that it has paid a properly due excise, sales and use, or gross receipts tax in another state on a sale the gross receipts from which are subject to taxation under this subtitle, shall be allowed a credit against the public service company franchise tax for the amount paid.

The credit permitted under this subsection may not exceed the tax imposed under this subtitle.

child care provided or paid for by a business entity for the children of a qualified employee with a disability as provided under § 21–309 of the Education Article; or

transportation provided or paid for by the business entity for a qualified employee with a disability as provided under § 21–309 of the Education Article.