Taxation

Our policy focus on taxation issues in Maryland

Our focus: Taxation

We support tax policy reform that reduces the cost of doing business. It is our goal to strengthen the state’s competitive tax climate to help attract and retain businesses, talent and investment.

Key Issues Include

Reduction of corporate income tax
Income tax modifications and/or credits that incentivize knowledge and specialized skills retention of retirees for business support and growth in Maryland
Competitive business income tax structures that incentivize business and job retention and growth in Maryland.

Related Policy Priorities & Anticipated Issues for 2025

Business Tax Environment, Combined Reporting and Throwback Rule: We oppose the adoption of tax reapportionment schemes such as the “throwback rule”, mandatory unitary combined reporting, or any other system which creates an economic disadvantage for Maryland businesses. Combined reporting is especially problematic in uncertain and poor economic climates as it makes already volatile corporate tax revenues more unstable. Further, combined reporting has been extensively studied by Maryland and surrounding states and has been found to offer little to no economic benefit. We oppose any attempt to increase the tax on Maryland businesses organized as Pass Through Entities (PTE’s) who pay their business taxes as personal income. Maryland PTE’s are some of the state’s smallest businesses who already pay taxes at a higher rate than other personal income at 5.75%. Raising the rate to match the corporate 8.25% places Maryland’s smallest businesses at a competitive disadvantage to those in surrounding states or to other businesses organized under different structures.

Expanding the Sales Tax on Services: We oppose any expansion of the sales tax on services not currently listed in Maryland law. Taxing services places a disproportionate burden on small businesses as they are more likely to contract out professional services. These increased costs are often passed on to consumers, driving up prices of critical services.

Evaluation of Maryland’s De-coupling Provisions: We support a thorough evaluation of Maryland’s current de-coupling law related to the federal tax structure and the advantages and disadvantages that exist.

Growing Maryland’s Economy: We encourage the General Assembly to evaluate all other alternatives to raising taxes on businesses in Maryland’s ever-changing economic environment. Maryland policy makers must rely on strategies encouraging business investment and creation to bring about long-term sustainable growth and revenues for the future. Making it more costly to operate a business in Maryland will have a deleterious impact on Maryland’s long-term economy and investment. We look forward to working alongside Governor Moore and other legislative leaders who are committed to a vision of economic growth, business investment and job creation.

All 2025 Legislative Priorities & Critical Issues

Get an in-depth look at the pressing issues and legislative priorities we've identified for the 2025 Legislative Session.

Explore 2025 Legislative Priorities

Get involved

Join our Taxation Policy Committee

Our Taxation policy committee covers all taxation issues impacting Maryland’s tax climate, focusing on efforts to make Maryland more competitive and that help attract and retain businesses, talent and capital investments. This committee meets every Friday during the Maryland General Assembly’s legislative session at 9:00 a.m. Meetings are held remotely via video conferencing.

Contact governmentaffairs@mdchamber.org for more information.

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