Bill Positions

Bill Number: HB 244

Bill Title: Tax Compliance and Administration Act of 2010

Bill Sponsor(s): Del. Hixson, et al

Subject: Budget & Taxation

Committee: W&M

Bill Summary: This bill would have made a series of changes to Maryland law to increase taxes by requiring: (1) Banks to add back intangible income for related entities, (2) 9.25% withholding of the sale price of any real property conveyed over $250,000 ($500,000 if filing jointly for a principal residence) unless an affidavit is filed saying no taxes are due, (3) Repeal of the sales tax vendors' allowance, (4) Imposition of the sales tax on any cigarettes not taxed with the tobacco tax, (5) Every employer who files withholding to also file an annual sales and use tax return, (6) Filing of monthly estimated taxes and returns by sales tax vendors remitting over $600,000 annually, (7) a 32 cent per pack tobacco tax increase, (8) Funds due the state in amounts over $5,000 (currently $10,000) be remitted by electronic funds transfer, and (9) Penalties for underestimation of sales tax.

History: In 2009 HB 1209 died without a vote in the Ways & Means Committee. In 2010 HB 244 again died without a vote in the Ways & Means Committee.

Chamber Position: Oppose

Position Summary: This $50 million assortment of tax increases was ill-advised and should not have been packaged into an omnibus tax increase bill. Each tax change should have been debated on its own merits. Most of these tax increases would have been damaging to Maryland businesses and increased the cost of our tax compliance. Retailers and other businesses would especially have been hit hard by elimination of the vendors' allowance, estimation of sales tax, and needless filing of sales and use tax returns.

Position Statement: To view the Chamber's complete position statement, click here (pdf).

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.