The Senate Budget and Taxation Committee narrowly defeated legislation (SB 469) to impose a system of mandatory unitary combined reporting for corporate income taxes in Maryland. The vote was 7-6.
“The Maryland Chamber thanks the lawmakers who rejected this legislation, which would have harmed Maryland’s business climate,” Maryland Chamber President/CEO Kathy Snyder, CCE said. “None of our competitor states have enacted combined reporting, and in this time of economic uncertainly, Maryland should focus on policies that promote economic growth and job creation.”
The Maryland Chamber has opposed combined reporting as a priority issue for a number 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.” 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.” 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.
For more information, contact Mathew Palmer at firstname.lastname@example.org.
Legislative Issues Tag: Taxes