Issues

Combined Reporting

Maryland Chamber Position

The Maryland Chamber of Commerce opposes combined reporting. This legislation needlessly interrupts the thoughtful strategy enacted by the General Assembly at the 2007 special session, which provides for data collection and analysis, a study commission to evaluate business taxes, and follow-up action by the General Assembly at the conclusion of the study.

Current law requires corporations doing business in the state to be taxed based on their payroll, property and sales in Maryland. Combined reporting arbitrarily assigns income to Maryland for all members of a corporate unitary group – even for those corporate entities having no presence in the state.

The Chamber has opposed combined reporting legislation for a number of years. States that have adopted combined reporting have found that it results in massive shifts of tax liability between businesses, with many paying more taxes and many paying less. We believe it’s important to analyze the winners and losers of such a tax change and the impact on Maryland’s economy.

Priority Bills

Position

The Maryland Chamber opposes combined reporting because it would place Maryland businesses at a competitive disadvantage. None of Maryland’s competitor states have enacted a combined reporting tax system. Such a system adds significant complexity and requires additional staff resources among businesses reporting the tax, as well as the Comptroller’s Office in auditing and litigating the tax. In addition, combined reporting will produce winners and losers among Maryland taxpayers, with some businesses paying more, others less.

We believe this year's legislation needlessly interrupts the thoughtful strategy enacted by the Maryland General Assembly in 2007, when it established a study commission to collect data and study business taxes in Maryland.

From the Blog

Combined Reporting News

Combined Reporting Videos