Legislation to impose a system of unitary combined reporting for corporate income taxes will be heard by the Senate Budget & Taxation Committee this afternoon.
At a time when many members of the Maryland General Assembly are working to boost Maryland’s economic competitiveness, this legislation would harm Maryland’s business climate and boost the competitiveness of neighboring states like Virginia. None of Maryland’s competitor states have enacted a combined reporting tax system. On its website, the Maryland Department of Business and Economic Development touts the fact that Maryland has “no unitary tax on profits.”
The Maryland Chamber has opposed combined reporting as a priority issue for many years. This corporate tax policy change would result in massive shifts in tax liability, complicate tax compliance and make Maryland less competitive. The fact that many corporations would pay less taxes under combined reporting demonstrates that this is not a “loophole closer.” In tax year 2010 1,517 businesses would have paid less taxes and 1,062 would have paid more. Results vary within industry groups, with some industries paying more and others paying less.
Maryland Chamber Senior Vice President of Government Affairs Mathew Palmer will oppose the bill, SB 395, during Wednesday’s hearing. You can view his position statement here. For more information, contact Palmer at email@example.com.
Legislative Issues Tag: Taxes