(a) In this title the following words have the meanings indicated.
(b) "Applicable tax base" means the portion of the income of an
investment conduit or a special exempt entity on which a tax is imposed
under:
(1) § 11, § 527(b), § 528(b), § 852(b)(1), § 857(b)(1) or (4)(a), or
§ 860G(c)(1) of the Internal Revenue Code; or
(2) any other section of the Internal Revenue Code that the Comptroller
determines by regulation to impose an entity level income tax on an
entity that the Comptroller determines to be:
(i) an investment conduit under subsection (h)(2) of this section; or
(ii) a special exempt entity under subsection (m)(2) of this section.
(c) "Corporation" includes an association or joint-stock company.
(d) "County income tax" means the county tax on income authorized in §
10-103 of this subtitle.
(e) "Federal adjusted gross income" means:
(1) for an individual other than a fiduciary, the individual's adjusted
gross income as determined under the Internal Revenue Code;
(2) for a fiduciary other than one described in item (3) of this
subsection, the fiduciary's taxable income, as determined under the
Internal Revenue Code, increased by the amount allowed to the fiduciary
as a deduction for a personal exemption under § 642(b) of the Internal
Revenue Code; or
(3) for a fiduciary exempt from taxation under § 408(e)(1) or § 501 of
the Internal Revenue Code, the fiduciary's unrelated business taxable
income as defined under § 512 of the Internal Revenue Code.
(f) (1) "Fiduciary" means a person holding the legal title to property for
the use and benefit of another person.
(2) "Fiduciary" does not include:
(i) an agent holding custody or possession of property that the principal
of the agent owns; or
(ii) a guardian, as defined in § 13-101 of the Estates and Trusts Article.
(g) "Individual" means, unless expressly provided otherwise, a natural
person or a fiduciary.
(h) "Investment conduit" means:
(1) any of the following entities described in the Internal Revenue Code:
(i) a regulated investment company;
(ii) a real estate investment trust; or
(iii) a real estate mortgage investment conduit; or
(2) any other entity that the Comptroller determines by regulation to enjoy
a status under the Internal Revenue Code pursuant to which the entity
is not generally subject to income tax at the entity level so long as
substantially all of its profits are distributed to the holders of
equity interests in the entity.
(i) "Maryland taxable income" means:
(1) for an individual, Maryland adjusted gross income, less the exemptions
and deductions allowed under this title; and
(2) for a corporation, Maryland modified income as allocated under this
title.
(j) "Nonresident" means an individual who is not a resident.
(k) (1) "Resident" means:
(i) an individual, other than a fiduciary, who:
1. is domiciled in this State on the last day of the taxable year; or
2. for more than 6 months of the taxable year, maintained a place of abode
in this State, whether domiciled in this State or not;
(ii) a personal representative of an estate if the decedent was domiciled in
this State on the date of the decedent's death; or
(iii) a fiduciary, other than a personal representative, of a trust if:
1. the trust was created, or consists of property transferred, by the will
of a decedent who was domiciled in the State on the date of the
decedent's death;
2. the creator or grantor of the trust is a current resident of the State;
or
3. the trust is principally administered in the State.
(2) "Resident" includes, for the part of the taxable year that an
individual resides in this State, an individual who:
(i) moves to this State with the intent to be domiciled in this State; or
(ii) is domiciled in this State and moves outside this State before the last
day of the taxable year with the bona fide intention to remain
permanently outside of this State.
(3) If an individual under paragraph (2)(ii) of this subsection again
resides in this State within 6 months after having moved outside this
State, there is a rebuttable presumption that the individual did not
have a bona fide intention to remain permanently outside this State.
(l) "S corporation" means a corporation that elects to be taxed as a
small business corporation under Subchapter S of the Internal Revenue
Code.
(m) "Special exempt entity" means:
(1) any of the following entities described in the Internal Revenue Code:
(i) a farmers' cooperative;
(ii) a political organization; or
(iii) a homeowners association; or
(2) any other entity not described in § 10-104(2) of this subtitle that
the Comptroller determines by regulation to be exempt from federal
income tax on all or some part of its income.
(n) "State income tax" means the State tax on income imposed under this
title.
(o) (1) "Taxable year" means:
(i) the period for which Maryland taxable income is computed under this
title; and
(ii) the annual accounting period defined in § 441 of the Internal Revenue
Code.
(2) "Taxable year" includes:
(i) a calendar year ending on December 31, as defined in § 441 of the
Internal Revenue Code;
(ii) a fiscal year ending on the last day of a month other than December, as
defined in § 441 of the Internal Revenue Code;
(iii) if a return is made for a period of less than 1 year, the period for
which the return is made; or
(iv) if an election is made under § 441(f) of the Internal Revenue Code,
the period for which a return is made.
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