Bill Positions

Bill Number: HB 584

Bill Title: Corporate Income Tax - Combined Reporting

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

Subject: Budget & Taxation

Committee: W&M

Bill Summary: This bill would have required corporations that are part of a unitary group to file an income tax return under the combined reporting method and apportion income to MD based on the 3-factor formula, effective for tax years beginning after December 31, 2009. The bill would also have required every corporation that must file a Maryland income tax return to also file with the Comptroller for tax years 2006 through 2010 specified data regarding throwback and nonoperational income.

History: The Chamber has opposed several bills in recent years (SB 2 2007 Special Session, SB 393 2007, SB 411 2006, SB 403 2005) that would have required corporations to pay income taxes based on combined reporting, all of which have failed. In 2009 HB 1244 died without a vote in the Ways & Means Committee. In 2010 HB 584 died in the Ways & Means Committee without a vote.

Chamber Position: Oppose

Position Summary: The Chamber opposed this bill because it prejudged the work of the MD Business Tax Reform Commission, which was established to evaluate Maryland's system of business taxation. Combined reporting will cause massive shifts in tax liability among Maryland corporations. It is inappropriate to impose significant new tax burdens on Maryland businesses in the depths of a recession.

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.