State Department of Assessments & Taxation v. Loyola Federal Savings & Loan Ass'n

ROSALYN B. BELL, Judge.

This case presents the question of whether a taxpayer can get a double benefit from a net operating loss because of an ambiguous Maryland franchise tax form. In June of 1988, the Circuit Court for Baltimore City determined that Loyola Federal Savings & Loan Association (Loyola) was entitled to such a deduction. We conclude that no such double benefit is available.

At issue in this appeal is the starting point in the calculation of the Maryland Franchise Tax. This issue arises because of a poorly drafted state franchise tax form. Line 1 of the state franchise tax form…