Wednesday, March 16, 2011
Tax Legislation Update
With a little under a month left in the 2011 General Assembly session, here is a quick update on the status of pending tax legislation.
Alternative Minimum Assessment (Oppose) – SB 979 would impose an alternative minimum assessment on corporations based on a percentage of their gross receipts, effective for tax years beginning after December 31, 2010. The bill is similar to SB 748 of 2005 and the repealed New Jersey AMA tax. The bill is being heard in the Senate Budget & Taxation Committee on 3/23/11 at 1 p.m.
Throwback/Nonoperational Income (Oppose) – SB 800 would establish a throwback rule for apportionment of corporate income and provide for the allocation of nonoperational corporate income to Maryland. The bill is being heard tomorrow in the Senate Budget & Taxation Committee at 1:15 p.m.
Millionaires Tax (Oppose) – Legislation to extend the 6.25% individual income tax bracket (SB 798) for 4 more years is being heard tomorrow in the Senate Budget & Taxation Committee. Similar legislation to permanently extend the bracket (HB 1070) was heard last week in the House Ways & Means Committee.
Combined Reporting (Oppose) – Bills to adopt combined reporting (SB 305/HB 731) effective for tax years beginning after December 31, 2010 have been heard in both houses, but have not been voted.
Earned Income Tax Credit (Oppose) – Bills to require employers to notify all employees of the federal and state earned income tax credit (SB 473/HB 632) have been heard in both houses but have not been voted.
Semiannual Property Tax Payment (Support) – HB 463, which would allow all commercial property owners to make use of the semiannual real property tax payment option, has passed 2nd Reading in the House.
Sunset on Tax Credits (Oppose) – HB 620, which would terminate most state business tax credits under a sunset evaluation requirement, was heard in the Ways & Means Committee and is receiving serious consideration by the committee.
We will have a better feel for what tax bills, if any, could advance as the General Assembly makes budget decisions during the next few days. Given the state’s structural deficit and push back by public employee unions, we are taking all tax bills seriously.
View all Maryland Chamber Budget and Taxation bill positions here. For more information, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
