# Tax - General (GTG)

## Title 8. Franchise Taxes

### Subtitle 1. Definitions; General Provisions

#### Section 8-101

(a) In this title the following words have the meanings indicated.

(b) "Company" means an association, corporation, or joint-stock company.

(c)

  (1) "Financial institution" means:

    (i) a credit company;

    (ii) except as provided in paragraph (2)(i) of this subsection, a finance company;

    (iii) an international banking facility;

    (iv) a loan company;

    (v) a mortgage company;

    (vi) a safe-deposit company; and

    (vii) a savings and loan association.

  (2) "Financial institution" does not include:

    (i) a finance company that makes loans only to farmers for agricultural purposes;

    (ii) a company licensed under the federal Small Business Investment Act of 1958;

    (iii) a corporation that elects to be taxed as a small business corporation under Subchapter S of the Internal Revenue Code;

    (iv) an entity that is a real estate mortgage investment conduit as defined in the Internal Revenue Code;

    (v) a limited liability company; or

    (vi) a commercial bank, savings bank, trust company, or company that substantially competes with national banks in the State.

(d) "Savings and loan association" means:

  (1) a savings and loan association that:

    (i) is organized under the laws of this State;

    (ii) is organized under the laws of another state and is admitted to do business in this State; or

    (iii) is organized under the laws of the United States and has an office in this State; or

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

(e)

  (1) "Savings bank" means a company or other institution that is organized to receive deposits of money and pay interest on the deposits.

  (2) "Savings bank" does not include a bank with capital stock.

#### Section 8-102

The franchise taxes under this title are imposed for the privilege of doing business in the State.

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Md. Code Ann., Tax-Gen. (as displayed at mgaleg.maryland.gov, October 16, 2026)