Taxes and Revenues Archives

Session Update: Tax and Revenue Legislation

This post summarizes the status of various tax and revenue bills that MACo took a position on. Indemnity Mortgages: HB 420 would apply the recordation tax to an indemnity mortgage in the same manner as if the guarantor were primarily liable for the guaranteed loan. An indemnity mortgage is recorded to establish a lien on the property. It typically occurs when a business entity creates a LLC to purchase property and the original business entity serves…

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April 5, 2011

Senate Budget Committee Approves Budget Plan: Rejects Pension Shift, Agrees To One-Time Funding for Local Roads

The Senate Budget and Taxation Committee approved its plan to modify the Governor's 2012 proposed budget, concurring with a large number of the actions taken by the House. As a part of their plan, the Senate Committee concurred with the House to restore funding for education, rejected a Department of Legislative Services (DLS) recommendation to transfer 50 percent of teacher retirement expenses to the local boards of education, and concurred with a one-time payment of…

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March 25, 2011

State Budget and Fiscal Issues / Taxes and Revenues

General Assembly Discussing a “Special Sales Tax” on Alcohol

As reported in the Maryland Politics section of the Baltimore Sun, members of the General Assembly are discussing whether an extra 3 to 4 percent "special sales tax" should apply to alcohol sales. Apparently, Washington, D.C. has instituted such an approach and health advocates think it makes sense to do it in Maryland as well. Previously, efforts to increase Maryland's alcohol costs have focused on raising the excise tax, which is levied at the wholesale…

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March 18, 2011

Bill Hearing / Taxes and Revenues / Uncategorized

MACo Opposes Semiannual Payment for Non-Owner Occupied Residential Property

MACo Executive Director Michael Sanderson testified in opposition to HB 695 before the House Ways and Means Committee on March 10. The proposed legislation would require a local government to provide for a semiannual payment of State, county, municipal, and special taxing district taxes for all residential property. Under current law, property taxes may be paid on a semiannual basis for owner-occupied residential property and small business property. HB 695 would extend this payment schedule…

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March 10, 2011

Bill Hearing / Taxes and Revenues

MACo Requests Local Option for Business Start-Up Tax Exemption

MACo Associate Director Andrea Mansfield testified before the House Ways and Means Committee on March 3 in support of HB1087 with amendments. HB 1087 would grant a one-time personal property tax exemption for businesses that organize during the current tax year or relocate their headquarters to Maryland in the current tax year. Instead of requiring counties that impose the personal property tax to provide this exemption, MACo requested that counties be given the option of…

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March 3, 2011

State Budget and Fiscal Issues / Taxes and Revenues / Uncategorized

Report: Errors Underly Many States’ Budget Forecasting Woes

A study released today by the Pew Center on the States and The Nelson A. Rockefeller Institute of Government found that the unpredictability of states three major revenue sources (income, sales, and corporate taxes) has been the primary cause of inaccurate budget forecasting. The Pew Center reports: The study found that the primary culprit driving more serious and frequent errors is not the states’ processes, methods and techniques, but rather, the increasing volatility of the…

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March 1, 2011

State Budget and Fiscal Issues / Taxes and Revenues / Transportation and Public Works

Senators Support Package of Bills to Generate $827 Million in Revenue

As reported by MarylandReporter.com, six Senators have come together to support a package of bills that would generate new revenues to offset some of the reductions made in Governor O'Malley's budget. The plan, called Maryland First, is being supported by Senators Jamie Raskin, Paul Pinsky, Delores Kelley, Karen Montgomery, James Rosapepe, and Brian Frosh. In a joint statement, the six senators detailed their Maryland First plan. They propose to: Raise the gasoline tax by 12…

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February 23, 2011

Taxes and Revenues

MACo Supports Closing Tax Loophole for Indemnity Mortgages

MACo Associate Director Andrea Mansfield testified before the House Ways and Means Committee on February 23 in support of HB420. The proposed legislation would apply the recordation tax to an indemnity mortgage in the same manner as if the guarantor were primarily liable for the guaranteed loan. The recordation tax would not apply if the recordation tax was paid on another instrument of writing that secures payment of the guaranteed loan, or if the indemnity…

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February 23, 2011

Taxes and Revenues / Transportation and Public Works

Governor Could Support for Transportation Revenues and Lockbox

As reported in the Annapolis Capital, Governor O'Malley indicated that he could support new revenues for transportation. O'Malley, who spoke to reporters after talking to students at the University of Maryland, said he has not yet reviewed recommendations made by a state commission this week to raise $800 million for transportation needs, but the governor said the state has a pressing need to invest more. O'Malley has said he would not propose any new tax…

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February 21, 2011

State Budget and Fiscal Issues / Taxes and Revenues / Transportation and Public Works

Transportation Commission Recommends Restoring Highway User Revenues

The Blue Ribbon Commission on Maryland Transportation Funding met on February 14 to make recommendations on "near-term fixes" for transportation funding to be considered by the Governor and General Assembly this legislative session. The draft report includes two main recommendations, with a series of recommended actions. The first recommendation is to "Put Trust Back in the Transportation Trust Fund." Recommended actions include either a constitutional amendment to create a firewall so funds cannot be used…

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February 15, 2011