Section 2-404 - Deduction of Foreign State Income Tax

(a) (1) This section applies to income tax that is imposed by a state other than this State. (2) This section does not apply to any income tax that is imposed by a political subdivision of another state. (b) Subject to subsection (c) of this section, the Central Payroll Bureau shall: (1) withhold income tax imposed by another state from the wages of a State officer or employee who is a resident of that state; and (2) pay over the amount withheld to the appropriate tax collecting agency of that state. (c) This section applies only if: (1) Maryland State income tax is not required to be withheld from the wages of the officer or employee under Title 10, Subtitle 9, Part II of the Tax - General Article; and (2) the state where the officer or employee resides: (i) withholds Maryland State income tax from the wages of Maryland residents who are employed by that state; and (ii) pays over the amount withheld to the Maryland State Comptroller.