Maryland 2022 Regular Session

Maryland House Bill HB172 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5	5		Underlining indicates amendments to bill.
6	6		Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7	7		amendment.
8		-	Italics indicate opposite chamber/conference committee amendments.
9	8		hb0172
10	9
11	10		HOUSE BILL 172
12		-	Q3 (2lr0318)
13		-	ENROLLED BILL
14		-	— Ways and Means/Budget and Taxation —
15		-	Introduced by Delegate Luedtke
16		-
17		-	Read and Examined by Proofreaders:
18		-
19		-	_______________________________________________
20		-	Proofreader.
21		-	_______________________________________________
22		-	Proofreader.
23		-
24		-	Sealed with the Great Seal and presented to the Governor, for his approval this
25		-
26		-	_______ day of _______________ at _________________ _______ o’clock, ________M.
27		-
28		-	______________________________________________
29		-	Speaker.
	11	+	Q3 2lr0318
	12	+	(PRE–FILED)
	13	+	By: Delegate Luedtke
	14	+	Requested: July 7, 2021
	15	+	Introduced and read first time: January 12, 2022
	16	+	Assigned to: Ways and Means
	17	+	Committee Report: Favorable with amendments
	18	+	House action: Adopted
	19	+	Read second time: March 9, 2022
30	20
31	21		CHAPTER ______
32	22
33	23		AN ACT concerning 1
34	24
35	25		Income Tax – Determination of Taxable Income Subtraction Modification – 2
36	26		Union Dues and Expenses to Influence Collective Bargaining 3
37	27
38	28		FOR the purpose of requiring an addition modification under the Maryland income tax for 4
39	29		certain expenses to assist, promote, or deter collective bargaining; allowing a 5
40	30		subtraction modification under the Maryland income tax for certain union dues paid 6
41	31		during the taxable year; and generally relating to modifications a subtraction 7
42	32		modification under the Maryland income tax for expenses to influence collective 8
43	33		bargaining and the payment of union dues. 9
44	34
45	35		BY repealing and reenacting, without amendments, 10
46	36		Article – Tax – General 11
47	37		Section 10–204(a), 10–208(a), and 10–305(a) 10–208(a) 12
48	38		Annotated Code of Maryland 13
49		-	(2016 Replacement Volume and 2021 Supplement) 14 2 HOUSE BILL 172
	39	+	(2016 Replacement Volume and 2021 Supplement) 14
	40	+
	41	+	BY adding to 15
	42	+	Article – Tax – General 16
	43	+	Section 10–204(m) and 10–208(aa) 17
	44	+	Annotated Code of Maryland 18
	45	+	(2016 Replacement Volume and 2021 Supplement) 19
	46	+
	47	+	BY repealing and reenacting, with amendments, 20
	48	+	Article – Tax – General 21 2 HOUSE BILL 172
	49	+
	50	+
	51	+	Section 10–305(d) 1
	52	+	Annotated Code of Maryland 2
	53	+	(2016 Replacement Volume and 2021 Supplement) 3
	54	+
	55	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
	56	+	That the Laws of Maryland read as follows: 5
	57	+
	58	+	Article – Tax – General 6
	59	+
	60	+	10–204. 7
	61	+
	62	+	(a) To the extent excluded from federal adjusted gross income, the amounts under 8
	63	+	this section are added to the federal adjusted gross income of a resident to determine 9
	64	+	Maryland adjusted gross income. 10
	65	+
	66	+	(M) (1) (I) IN THIS SUBSECTION , “ASSIST, PROMOTE, OR DETER 11
	67	+	COLLECTIVE BARGAININ G” MEANS ANY ATTEMPT BY A TAXPAYER TO INFL UENCE 12
	68	+	THE DECISIONS OF THE TAXPAYER’S EMPLOYEES TO : 13
	69	+
	70	+	1. SUPPORT OR OPPOSE AN EMPLOYEE ORGANIZATIO N 14
	71	+	THAT REPRESENTS OR S EEKS TO REPRESENT TH E EMPLOYEES OF THE T AXPAYER; 15
	72	+	OR 16
	73	+
	74	+	2. BECOME A MEMBER OF A N EMPLOYEE 17
	75	+	ORGANIZATION . 18
	76	+
	77	+	(II) “ASSIST, PROMOTE, OR DETER COLLECTIVE B ARGAINING” 19
	78	+	DOES NOT INCLUDE : 20
	79	+
	80	+	1. ADDRESSING A GRIEVAN CE OR NEGOTIATING OR 21
	81	+	ADMINISTERING A COLL ECTIVE BARGAINING AG REEMENT; 22
	82	+
	83	+	2. ALLOWING AN EMPLOYEE ORGANIZATION OR A 23
	84	+	REPRESENTATIVE OF AN EMPLOYEE ORGANIZATIO N ACCESS TO AND USE OF THE 24
	85	+	TAXPAYER’S FACILITIES OR PROP ERTIES; 25
	86	+
	87	+	3. PERFORMING AN ACTIVI TY REQUIRED BY FEDER AL 26
	88	+	OR STATE LAW OR A COLLEC TIVE BARGAINING AGRE EMENT; 27
	89	+
	90	+	4. NEGOTIATING , ENTERING INTO , OR CARRYING OUT A 28
	91	+	VOLUNTARY RECOGNITIO N AGREEMENT WITH AN EMPLOYEE ORGANIZATION ; OR 29
	92	+
	93	+	5. PAYING WAGES TO A RE PRESENTED EMPLOYEE W HILE 30
	94	+	THE EMPLOYEE IS PERF ORMING DUTIES IF THE PAYMENT IS PERMITTED UNDER A 31
	95	+	COLLECTIVE BARGAININ G AGREEMENT . 32 HOUSE BILL 172 3
50	96
51	97
52	98
53		-	BY adding to 1
54		-	Article – Tax – General 2
55		-	Section 10–204(m) and 10–208(aa) 3
56		-	Annotated Code of Maryland 4
57		-	(2016 Replacement Volume and 2021 Supplement) 5
	99	+	(2) THE ADDITION UNDER SU BSECTION (A) OF THIS SECTION 1
	100	+	INCLUDES ANY AMOUNT EXPENDED DURING THE TAXABL E YEAR TO ASSIST , 2
	101	+	PROMOTE, OR DETER COLLECTIVE BARGAINING. 3
58	102
59		-	BY repealing and reenacting, with amendments, 6
60		-	Article – Tax – General 7
61		-	Section 10–305(d) 8
62		-	Annotated Code of Maryland 9
63		-	(2016 Replacement Volume and 2021 Supplement) 10
	103	+	10–208. 4
64	104
65		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
66		-	That the Laws of Maryland read as follows: 12
	105	+	(a) In addition to the modification under § 10–207 of this subtitle, the amounts 5
	106	+	under this section are subtracted from the federal adjusted gross income of a resident to 6
	107	+	determine Maryland adjusted gross income. 7
67	108
68		-	Article – Tax – General 13
	109	+	(AA) (1) THE SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 8
	110	+	SUBTRACTION ALLOWED UNDER SUBSECTION (A) OF THIS SECTION INCL UDES THE 9
	111	+	AMOUNT OF UNION DUES PAID BY AN INDIVIDUA L DURING THE TAXABLE YEAR THAT 10
	112	+	WOULD HAVE BEEN ALLO WED AS A DEDUCTION U NDER § 162 OF THE INTERNAL 11
	113	+	REVENUE CODE WITHOUT REGARD T O THE LIMITATION IMP OSED BY § 67 OF THE 12
	114	+	INTERNAL REVENUE CODE. 13
69	115
70		-	10–204. 14
	116	+	(2) THE AMOUNT OF THE SUB TRACTION ALLOWED UND ER 14
	117	+	PARAGRAPH (1) OF THIS SUBSECTION M AY NOT EXCEE D $300 FOR ANY TAXABLE 15
	118	+	YEAR. 16
71	119
72		-	(a) To the extent excluded from federal adjusted gross income, the amounts under 15
73		-	this section are added to the federal adjusted gross income of a resident to determine 16
74		-	Maryland adjusted gross income. 17
	120	+	10–305. 17
75	121
76		-	(M) ~~(1) (I) IN~~ THIS ~~SUBSECTION , “ASSIST, PROMOTE, OR DETER~~ 18
77		-	~~COLLECTIVE BARGAININ G”~~ ~~MEANS ANY ATTEMPT BY~~ A ~~TAXPAYER~~ TO ~~INFL UENCE~~ 19
78		-	~~THE DECISIONS OF THE TAXPAYER’S EMPLOYEES TO :~~ 20
	122	+	(a) To the extent excluded from federal taxable income, the amounts under this 18
	123	+	section are added to the federal taxable income of a corporation to determine Maryland 19
	124	+	modified income. 20
79	125
80		-	1. SUPPORT OR OPPOSE AN EMPLOYEE ORGANIZATIO N 21
81		-	THAT REPRESENTS OR S EEKS TO REPRESENT TH E EMPLOYEES OF THE T AXPAYER; 22
82		-	OR 23
	126	+	(d) The addition under subsection (a) of this section includes the additions 21
	127	+	required for an individual under: 22
83	128
84		-	~~2. BECOME A MEMBER~~ OF A ~~N EMPLOYEE 24~~
85		-	~~ORGANIZATION . 25~~
	129	+	(1) § 10–204(b) of this title (Dividends and interest from another state or 23
	130	+	local obligation); 24
86	131
87		-	(II) “ASSIST, PROMOTE, OR DETER COLLECTIVE BARGAINING” 26
88		-	DOES NOT INCLUDE : 27
	132	+	(2) § 10–204(c)(2) of this title (Federal tax–exempt income); 25
89	133
90		-	1. ADDRESSING A GRIEVAN CE OR NEGOTIATING OR 28
91		-	ADMINISTERING A COLL ECTIVE BARGAINING AG REEMENT; 29
	134	+	(3) § 10–204(e) of this title (Oil percentage depletion allowance); 26
92	135
93		-	2. ALLOWING AN EMPLOYEE ORGANIZATION OR A 30
94		-	REPRESENTATIVE OF AN EMPLOYEE ORGANIZATIO N ACCESS TO AND USE OF THE 31
95		-	TAXPAYER’S FACILITIES OR PROP ERTIES; 32
96		-	HOUSE BILL 172 3
	136	+	(4) § 10–204(i) of this title (Deduction for qualified production activities 27
	137	+	income); 28
97	138
98		-
99		-	3. PERFORMING AN ACTIVI TY REQUIRED BY FEDER AL 1
100		-	OR STATE LAW OR A COLLEC TIVE BARGAINING AGRE EMENT; 2
101		-
102		-	4. NEGOTIATING , ENTERING INTO , OR CARRYING OUT A 3
103		-	VOLUNTARY RECOGNITIO N AGREEMENT WITH AN EMPLOYEE ORGANIZ ATION; OR 4
104		-
105		-	5. PAYING WAGES TO A RE PRESENTED EMPLOYEE W HILE 5
106		-	THE EMPLOYEE IS PERF ORMING DUTIES IF THE PAYMENT IS PERMITTED UNDER A 6
107		-	COLLECTIVE BARGAININ G AGREEMENT . 7
108		-
109		-	(2) THE ADDITION UNDER SU BSECTION (A) OF THIS SECTION 8
110		-	INCLUDES ANY AMOUNT EXPENDED DURI NG THE TAXABLE YEAR TO ASSIST, 9
111		-	PROMOTE, OR DETER COLLECTIVE BARGAINING. 10
112		-
113		-	10–208. 11
114		-
115		-	(a) In addition to the modification under § 10–207 of this subtitle, the amounts 12
116		-	under this section are subtracted from the federal adjusted gross income of a resident to 13
117		-	determine Maryland adjusted gross income. 14
118		-
119		-	(AA) (1) THE SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE THE 15
120		-	SUBTRACTION ALLOWED UNDER SUBSECTION (A) OF THIS SECTION INCL UDES THE 16
121		-	AMOUNT OF UNION DUES PAID BY AN INDIVIDUA L DURING THE TAXABLE YEAR THAT 17
122		-	WOULD HAVE BEEN ALLOWED AS A DEDUCTION UNDER § 162 OF THE INTERNAL 18
123		-	REVENUE CODE WITHOUT REGARD T O THE LIMITATION IMP OSED BY § 67 OF THE 19
124		-	INTERNAL REVENUE CODE. 20
125		-
126		-	(2) THE AMOUNT OF THE SUB TRACTION ALLOWED UND ER 21
127		-	PARAGRAPH (1) OF THIS SUBSECTION M AY NOT EXCEED $300 FOR ANY TAXABLE 22
128		-	YEAR. 23
129		-
130		-	10–305. 24
131		-
132		-	(a) To the extent excluded from federal taxable income, the amounts under this 25
133		-	section are added to the federal taxable income of a corporation to determine Maryland 26
134		-	modified income. 27
135		-
136		-	(d) The addition under subsection (a) of this section includes the additions 28
137		-	required for an individual under: 29
138		-
139		-	(1) § 10–204(b) of this title (Dividends and interest from another state or 30
140		-	local obligation); 31
141		-
142		-	(2) § 10–204(c)(2) of this title (Federal tax–exempt income); 32
	139	+	(5) § 10–204(j) of this title (Deduction for costs for security clearance 29
	140	+	administrative expenses and construction and equipment costs incurred to construct or 30
	141	+	renovate a sensitive compartmented information facility); [and] 31
143	142		4 HOUSE BILL 172
144	143
145	144
146		-	(3) § 10–204(e) of this title (Oil percentage depletion allowance); 1
	145	+	(6) § 10–204(l) of this title (Deduction for donations to qualified permanent 1
	146	+	endowment funds); AND 2
147	147
148		-	(4) § 10–204(i) of this ~~title~~ (Deduction for ~~qualified production activities 2~~
149		-	~~income~~)~~; 3~~
	148	+	(7) § 10–204(M) OF THIS TITL E (DEDUCTION FOR EXPENSE S TO 3
	149	+	ASSIST, PROMOTE, OR DETER COLLECTIVE BARGAINING). 4
150	150
151		-	(5) § 10–204(j) of this title (Deduction for costs for security clearance 4
152		-	administrative expenses and construction and equipment costs incurred to construct or 5
153		-	renovate a sensitive compartmented information facility); [and] 6
154		-
155		-	(6) § 10–204(l) of this title (Deduction for donations to qualified permanent 7
156		-	endowment funds); AND 8
157		-
158		-	(7) § 10–204(M) OF THIS TITLE (DEDUCTION FOR EXPENSE S TO 9
159		-	ASSIST, PROMOTE, OR DETER COLLECTIVE BARGAINING). 10
160		-
161		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 11
162		-	1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021. 12
163		-
	151	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
	152	+	1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021. 6
164	153
165	154
166	155
167	156
168	157		Approved:
169	158		________________________________________________________________________________
170	159		Governor.
171	160		________________________________________________________________________________
172	161		Speaker of the House of Delegates.
173	162		________________________________________________________________________________
174	163		President of the Senate.