Section 13-602 - Deficiency in estimated tax. - Maryland Statutes

§ 13-602. Deficiency in estimated tax.
 

(a)  In general.- Except as provided in subsections (b) and (c) of this section, 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 § 8-210(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 110% of the tax paid for the prior taxable year, reduced by the credit allowed under § 10-703 of this article. 

(b)  Exemption - Underestimation of county tax.- Interest may not be assessed on the underestimation of individual income tax if: 

(1) at least 90% of the individual's taxable income is also taxable by another state; and 

(2) the underestimation is of the county income tax only. 

(c)  Exemption - Amount specified in § 6654(e)(1) of the Internal Revenue Code.- A tax collector may not assess interest on unpaid individual income tax under subsection (a) of this section if the amount of unpaid income tax is less than one-half the amount specified in § 6654(e)(1) of the Internal Revenue Code. 
 

[An. Code 1957, art. 81, §§ 130A, 312; 1988, ch. 2, § 1; ch. 110, § 1; 1991, ch. 487, § 1; 1992, 1st Sp. Sess., ch. 1, § 6; 1994, chs. 578, 660; 1995, ch. 3, § 1; 2003, ch. 203, § 24.]