EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0172*
HOUSE BILL 172
Q3 2lr0318
(PRE–FILED)
By: Delegate Luedtke
Requested: July 7, 2021
Introduced and read first time: January 12, 2022
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Determination of Taxable Income – Union Dues and Expenses to 2
Influence Collective Bargaining 3
FOR the purpose of requiring an addition modification under the Maryland income tax for 4
certain expenses to assist, promote, or deter collective bargaining; allowing a 5
subtraction modification under the Maryland income tax for certain union dues paid 6
during the taxable year; and generally relating to modifications under the Maryland 7
income tax for expenses to influence collective bargaining and payment of union 8
dues. 9
BY repealing and reenacting, without amendments, 10
Article – Tax – General 11
Section 10–204(a), 10–208(a), and 10–305(a) 12
Annotated Code of Maryland 13
(2016 Replacement Volume and 2021 Supplement) 14
BY adding to 15
Article – Tax – General 16
Section 10–204(m) and 10–208(aa) 17
Annotated Code of Maryland 18
(2016 Replacement Volume and 2021 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – Tax – General 21
Section 10–305(d) 22
Annotated Code of Maryland 23
(2016 Replacement Volume and 2021 Supplement) 24
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
That the Laws of Maryland read as follows: 26 2 HOUSE BILL 172
Article – Tax – General 1
10–204. 2
(a) To the extent excluded from federal adjusted gross income, the amounts under 3
this section are added to the federal adjusted gross income of a resident to determine 4
Maryland adjusted gross income. 5
(M) (1) (I) IN THIS SUBSECTION , “ASSIST, PROMOTE, OR DETER 6
COLLECTIVE BARGAININ G” MEANS ANY ATTEMPT BY A TAXPAYER TO INFLUE NCE 7
THE DECISIONS OF THE TAXPAYER’S EMPLOYEES TO : 8
1. SUPPORT OR OPPOSE AN EMPLOYEE ORGANIZATIO N 9
THAT REPRESENTS OR S EEKS TO REPRESENT THE EMPLOYEES OF THE TAX PAYER; 10
OR 11
2. BECOME A MEMBER OF A N EMPLOYEE 12
ORGANIZATION . 13
(II) “ASSIST, PROMOTE, OR DETER COLLECTIVE BARGAINING” 14
DOES NOT INCLUDE : 15
1. ADDRESSING A GRIEVAN CE OR NEGOTIATING OR 16
ADMINISTERING A COLL ECTIVE BARGAINING AGREEMENT ; 17
2. ALLOWING AN EMPLOYEE ORGANIZATION OR A 18
REPRESENTATIVE OF AN EMPLOYEE ORGANIZATIO N ACCESS TO AND USE OF THE 19
TAXPAYER’S FACILITIES OR PROP ERTIES; 20
3. PERFORMING AN ACTIVI TY REQUIRED BY FEDER AL 21
OR STATE LAW OR A COLLEC TIVE BARGAINING AGREEMENT ; 22
4. NEGOTIATING , ENTERING INTO , OR CARRYING OUT A 23
VOLUNTARY RECOGNITIO N AGREEMENT WITH AN EMPLOYEE ORGANIZATIO N; OR 24
5. PAYING WAGES TO A RE PRESENTED EMPLOYEE W HILE 25
THE EMPLOYEE IS PERF ORMING DUTIES IF THE PAYMENT IS PERMITTED UNDER A 26
COLLECTIVE BARGAININ G AGREEMENT . 27
(2) THE ADDITION UNDER SU BSECTION (A) OF THIS SECTION 28
INCLUDES ANY AMOUNT EXPENDED DURING THE TAXABLE YEAR TO ASSI ST, 29
PROMOTE, OR DETER COLLECTIVE BARGAINING. 30
HOUSE BILL 172 3
10–208. 1
(a) In addition to the modification under § 10–207 of this subtitle, the amounts 2
under this section are subtracted from the federal adjusted gross income of a resident to 3
determine Maryland adjusted gross income. 4
(AA) THE SUBTRACTION ALLOW ED UNDER SUBSECTION (A) OF THIS SECTION 5
INCLUDES THE AMOUN T OF UNION DUES PAID BY AN INDIVIDUAL DUR ING THE 6
TAXABLE YEAR THAT WO ULD HAVE BEEN ALLOWE D AS A DEDUCTION UND ER § 162 7
OF THE INTERNAL REVENUE CODE WITHOUT REGARD T O THE LIMITATION IMP OSED 8
BY § 67 OF THE INTERNAL REVENUE CODE. 9
10–305. 10
(a) To the extent excluded from federal taxable income, the amounts under this 11
section are added to the federal taxable income of a corporation to determine Maryland 12
modified income. 13
(d) The addition under subsection (a) of this section includes the additions 14
required for an individual under: 15
(1) § 10–204(b) of this title (Dividends and interest from another state or 16
local obligation); 17
(2) § 10–204(c)(2) of this title (Federal tax–exempt income); 18
(3) § 10–204(e) of this title (Oil percentage depletion allowance); 19
(4) § 10–204(i) of this title (Deduction for qualified production activities 20
income); 21
(5) § 10–204(j) of this title (Deduction for costs for security clearance 22
administrative expenses and construction and equipment costs incurred to construct or 23
renovate a sensitive compartmented information facility); [and] 24
(6) § 10–204(l) of this title (Deduction for donations to qualified permanent 25
endowment funds); AND 26
(7) § 10–204(M) OF THIS TITLE (DEDUCTION FOR EXPENSE S TO 27
ASSIST, PROMOTE, OR DETER COLLECTIVE BARGAINING). 28
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 29
1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021. 30