Legislative Report -- February 6, 2008

Legislation Would Moderate Onerous
Corporate Reporting Requirements
During the November 2007 special session, the Maryland General Assembly passed legislation creating the Maryland Business Tax Reform Commission. The Commission will review and evaluate the state’s current business tax structure and make recommendations for changes. Policies to be studied include mandatory unitary combined reporting, gross receipts taxes, value added taxes, alternative minimum taxes, and more.

While the Maryland Chamber was pleased the study arose as an alternative to mandatory unitary combined reporting, the legislation as drafted goes beyond what the government needs to do further analysis. As part of the study, the legislation imposes extensive new reporting requirements on corporations. No other state imposes reporting requirements that are this extensive.

The Maryland Chamber strongly supports legislation, SB 444/HB 664, which would reduce the most onerous and unnecessary aspects of the reporting requirements, while still enabling the commission to gather the information the State needs. The bill would:

• Exclude companies that are not subject to U.S. federal income tax;

• Alter the definition of "doing business" in Maryland for purposes of who must report;

• Remove the requirements for submitting certain data regarding other states;

• Offer the alternative for corporations to submit an actual combined return filed in another state but substituting Maryland apportionment factors;

• Require that the due date of the 2006 tax year data is the due date of corporation's 2007 Maryland income tax return;

• Change the due date of the Comptroller's report; removing the penalty language and replacing it with the provision that the Comptroller is to establish an oversight and penalty system;

• Provide that the last statements under this section are due for the 2010 tax year in order to have that timing coincide with the final report due date of the Business Tax Reform Commission;

• Require that the Commission and the Comptroller are to review the requirements and make recommendations for any changes by December 2008.

To learn more about the reporting requirements, and the Chamber’s efforts to moderate them, contact Karen Syrylo, CPA, at ksyrylo@mdchamber.org.

Action Needed: Computer Services Sales Tax
Have you contacted your legislators about the 6 percent computer services sales tax set to take effect on July 1?

This tax will stifle economic development and job creation in Maryland. It will impact all companies that provide or consume computer services. Repealing the tax is one of the Maryland Chamber’s top priorities.

Lawmakers have told us that they want to hear more from impacted businesses. Help us build the momentum we need to repeal this costly tax.

Contact Your Legislators: If we are going to succeed in repealing the computer services sales tax, we must ensure that legislators are hearing from impacted constituents. If you haven’t already contacted your legislators, contact them now. For background information, or online tools to help you contact your legislators, visit www.mdchamber.org/techtax.

Help Spread the Word: The more people we can reach with our message, the more likely we are to achieve a successful outcome. Tell your colleagues and employees about our effort to repeal the tax, and encourage them to contact their legislators. Urge them to visit our coalition website at www.FightTheTechTax.com.

Reducing Greenhouse Gas Emissions to 1990 Levels
There continues to be efforts by environmentalists to establish a statewide greenhouse gas (GHG) emissions limit based on 1990 emissions levels.

The Maryland Chamber opposes SB 309, Global Warming Solutions -- Reductions in Greenhouse Gases. This bill would require Maryland to reduce green house gas emissions by 25 percent by 2020, and 90 percent by 2050 – the strongest mandate in the country. Passage would require Marylanders and Maryland businesses to make major changes in their daily lives and operations by driving 1/3 less and consuming 1/3 less electricity.

Maryland’s man-made GHG emissions comprise approximately 1.5% of the United States’ emissions and a very small percentage of the world’s total emissions. Since GHG emissions disperse globally and Maryland’s emissions are a very small percentage of the total global problem, this issue needs to be addressed on a national level in concert with international efforts.

Contact Allyson Black, Vice President of Government Affairs, for more information or to offer your help when the bill comes to a hearing at ablack@mdchamber.org.

Flexible Leave Required
The Maryland Chamber’s Employment Relations Committee has begun its review of various employment law bills being introduced in the General Assembly. SB 344 and HB 40 are similar bills called the Flexible Leave Act. The bills would require employers who already provide paid time off for their employees to allow those employees to use it for the illness of immediate family members. Unlike the Family Medical Leave Act (FMLA), this bill would leave the decision up to the employee and not require documentation. The Maryland Chamber opposes the bill. The House bill is set for hearing on February 14 at 1 p.m. in the Economic Matters Committee. The Senate bill hearing is set for February 21 at 1 p.m. Contact Allyson at ablack@mdchamber.org if you are interested in testifying on this issue.

Ask the Maryland Chamber Experts
Do you have a question about a legislative issue pending before the Maryland General Assembly? The Maryland Chamber lobbyists and our volunteers are a great resource for information and expertise. If you have a question, email it to Will Burns at wburns@mdchamber.org, and one of the Chamber’s lobbyists will provide an answer. We will publish questions and answers in future editions of the Legislative Report.

Upcoming Committee Meetings

February 7, 2008
Environment Committee
MD Chamber of Commerce
60 West Street, Suite 100, Annapolis, MD 21401
8:30 a.m.

February 7, 2008
Health Care Committee
MD Chamber of Commerce
60 West Street, Suite 100, Annapolis, MD 21401
10:30 a.m.

February 11, 2008
Legislative Committee
MD Chamber of Commerce
60 West Street, Suite 100, Annapolis, MD 21401
3 p.m.

Upcoming Events

February 13, 2008
How to Succeed After SBA 8(a)
Greenbelt Marriott Hotel
6400 Ivy Lane
Greenbelt, MD 20770
7:30 a.m.
Henry Gilford will share his experiences and outline the good, the bad, and the ugly of how to succeed after the SBA 8(a) program. Take advantage of this opportunity to learn from the SBA’s 2003 Small Business Person of the Year for the Washington metropolitan area.  Registration is $45. Contact Gail Lemke at  glemke@mdchamber.org.

February 19, 2008
Maryland Bioscience in the 21st Century?
The Westin Annapolis
100 Westgate Circle
Annapolis, MD 21401
Join some of Maryland's top bioscience, business and venture capital experts to discuss the future of the bioscience industry in the Old Line State. For more information, visit www.mdbizbio.org.