Final tax bill from special session
What a difference a few weeks can make.
Marylanders prepare for Thanksgiving with $1.4 billion in new taxes from the governor and the General Assembly, $800 million of which will be coming from the business sector. Slots are proposed for five locations and will go to a referendum in November 2008.
This is the final outcome of three weeks in special session.
The table on the left shows the new individual income tax rates.
The Maryland Chamber of Commerce has an excellent recap of the new taxes and effective dates on its special session blog.
Note the personal exemptions change and phase out at higher income levels.
Also the Non-resident (snowbird) requirement changes from six months to three months. We reported this incorrectly based on amendments - This provision did not make it in the final bill.
The new sales tax rate of 6 percent is effective Jan. 3, 2008. (Vendors are allowed to assume or absorb the tax.)
The new sales tax on computer services will take effect July 1, 2008.
The corporate income tax rate of 8.25 percent will be effective for tax years beginning after Dec. 31, 2007.
I am concerned that one of the most detrimental pieces of this legislation is in the reporting requirements that have been added. Corporations in Maryland and public companies that have any business in Maryland will be subject to these extensive and complicated reporting requirements. See pages 40-49 of Senate Bill 2.
Here is a great summary of the final bills by the Department of Legislative Services.
What do you think of the overall plan? What about these new reporting requirements: Are they painful or no big deal?