Final tax bill expected by weekend
Good news: CPA services are still not included in any of the final three proposals as we go into the final days of the Maryland General Assembly's special session.
We are down to the final days of the reconciliation of the various tax plans passed by the Maryland House and Senate. The three proposals can be found here:
- Senate Bill 2, Tax Reform and Transportation Investmnent Act of 2007: This passed by a vote of 24-23; you can view the voting records here. This is the version that added computer services and video arcade games to be subject to the new higher sales tax rate (6 percent) and included increases in corporate, income, sales taxes and other taxes. Read a good summary in The Sun's article. Note: The Senate took out the governor's proposed taxable services of real property management, tanning, massage, physical fitness, sauna and steam bath facilities.
- House Bill 2, Tax Reform Act of 2007, which passed by a vote of 82 - 55 (with four absent); see the voting record here. You can read an excellent summary of this bill at the Maryland Chamber of Commerce's special session blog here. The House increased corporate tax more (from 7 percent to 8.75 percent; Virginia is only 6 percent) and added combined reporting. The House version also included higher income tax brackets and added car repairs instead of computer services to services subjec to sales taxes.
- Gov. O'Malley's original plan can be found on his Web site here. This version contains the original services of real property management, tanning, massage, physical fitness, sauna and steam bath facilities.
We will keep you posted in the event we need more grassroots support.