Once again, legislation to impose a system of unitary combined reporting for corporate income taxes was heard in the Senate Budget & Taxation Committee on Wednesday.
“Despite claims to the contrary, combined reporting closes no loopholes and adds little to overall state coffers. Instead, it adds volatility to tax revenues, disadvantages Maryland among its competitors, adds complexity to small businesses, and risks alienating the very industries Maryland is trying to attract,” said Mathew Palmer, Senior Vice President, Government Affairs. “Combined reporting would be bad for Maryland, its businesses, and the state agencies charged with servings its needs.”
The Maryland Chamber has opposed combined reporting as a priority issue for multiple of years. This corporate tax policy change would result in massive shifts in tax liability, complicate tax compliance and make Maryland less competitive. Proponents touted combined reporting as a “loophole closer,” but Maryland lawmakers have addressed tax avoidance during prior sessions. The fact that many corporations would pay less taxes under combined reporting demonstrates that this is not a “loophole closer”. On its website, the Maryland Department of Business and Economic Development touts the fact that Maryland has “no unitary tax on profits”, further proving that our current corporate tax structure is business friendly.
There is companion legislation imposing combined reporting which has been filed in the House of Delegates, however a hearing date has not been set for the bill. For more information, contact Palmer at email@example.com.