2013 Session Update: Tax and Revenue – Tax Incentives and Tax Sales

The General Assembly is now in its final week of the Legislative Session and bills have started moving to their ultimate end.  While it is still possible for a bill still sitting in its committee of origin to pass, it is more likely that bills still in this status are not going to move and those that have moved to the opposite chamber will continue to be worked towards final passage.

This post summarizes the status of tax and revenue bills related to tax incentives or tax sales that MACo either considered or took a position on.

Subtraction Modification for Qualifying Business EnterprisesHB 564 / SB 498 would provide tax incentives for the sale or transfer of controlling interest, or the investment in a business that results in the accelerated growth, enhanced capacity, or creation of a small business, minority-owned business, woman-owned business, or certified service-disabled veteran-owned business in Maryland. The tax incentives would take the form of a subtraction modification or a tax credit. MACo opposed the bill raising fiscal concerns and the overly broad nature of the subtraction modification.  Status: Both bills have been reported unfavorable by their respective House and Senate committees.

Tax Sales – Redemption of Property: SB 227 would repeal a requirement that a person redeeming a property sold at tax sale pay any taxes, interest and penalties that have accrued after the date of the tax sale to the county. MACo opposed this legislation stating it would undermine the tax sale process and result in properties being placed in tax sales for multiple years while back-paid tax continues to accrue. Status: No action has been taken on the bill in the Senate Budget and Taxation Committee.

Property Tax Credit – Generators: Numerous bills have been introduced to provide a property tax credit to a retail service stations that install generators.  HB 188 and SB 689 would require a local jurisdiction to grant the credit against the local property tax.  HB 817 would authorize a local government to grant the credit.  MACo opposed the bills that placed a mandate on local governments to offer the credit stating that it limits local autonomy and does not take into consideration the jurisdiction’s fiscal situation or its broader needs. Status:  No action has been taken on HB 188 or SB 689 in their respective committees.  HB 817 has passed the House and had a hearing on April 4 in the Senate Budget and Taxation Committee.

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