Maryland 2022 Regular Session

Maryland House Bill HB839 Compare Versions

Only one version of the bill is available at this time.

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	hb0839
6	6
7	7	HOUSE BILL 839
8	8	Q3 2lr2405
9	9	HB 1146/18 – W&M
10	10	By: Delegates Buckel, Anderton, Arentz, Cox, Ghrist, Griffith, Hartman,
11	11	Hornberger, Howard, Jacobs, Kipke, Krebs, Mangione, McKay, Morgan,
12	12	Munoz, Novotny, Otto, Reilly, Rose, Saab, Shoemaker, Szeliga, and Wivell
13	13	Introduced and read first time: February 7, 2022
14	14	Assigned to: Ways and Means
15	15
16	16	A BILL ENTITLED
17	17
18	18	AN ACT concerning 1
19	19
20	20	Income Tax – Rates and Itemized Deductions 2
21	21
22	22	FOR the purpose of altering the State income tax rate on the Maryland taxable income of 3
23	23	certain individuals; allowing an individual to itemize deductions to compute 4
24	24	Maryland taxable income whether or not the individual itemizes deductions on the 5
25	25	individual’s federal income tax return; and generally relating to the State individual 6
26	26	income tax. 7
27	27
28	28	BY repealing and reenacting, with amendments, 8
29	29	Article – Tax – General 9
30	30	Section 10–105(a), 10–217(a)(1), and 10–218 10
31	31	Annotated Code of Maryland 11
32	32	(2016 Replacement Volume and 2021 Supplement) 12
33	33
34	34	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
35	35	That the Laws of Maryland read as follows: 14
36	36
37	37	Article – Tax – General 15
38	38
39	39	10–105. 16
40	40
41	41	(a) (1) For an individual other than an individual described in paragraph (2) 17
42	42	of this subsection, the State income tax rate is: 18
43	43
44	44	(i) 2% of Maryland taxable income of $1 through $1,000; 19
45	45
46	46	(ii) 3% of Maryland taxable income of $1,001 through $2,000; 20
47	47
48	48	(iii) 4% of Maryland taxable income of $2,001 through $3,000; 21 2 HOUSE BILL 839
49	49
50	50
51	51
52	52	(iv) [4.75%] 4.5% of Maryland taxable income of $3,001 through 1
53	53	$100,000; 2
54	54
55	55	(v) [5%] 4.75% of Maryland taxable income of $100,001 through 3
56	56	$125,000; 4
57	57
58	58	(vi) [5.25%] 5.15% of Maryland taxable income of $125,001 through 5
59	59	$150,000; 6
60	60
61	61	(vii) [5.5%] 5.35% of Maryland taxable income of $150,001 through 7
62	62	$250,000; and 8
63	63
64	64	(viii) 5.75% of Maryland taxable income in excess of $250,000. 9
65	65
66	66	(2) For spouses filing a joint return or for a surviving spouse or head of 10
67	67	household as defined in § 2 of the Internal Revenue Code, the State income tax rate is: 11
68	68
69	69	(i) 2% of Maryland taxable income of $1 through $1,000; 12
70	70
71	71	(ii) 3% of Maryland taxable income of $1,001 through $2,000; 13
72	72
73	73	(iii) 4% of Maryland taxable income of $2,001 through $3,000; 14
74	74
75	75	(iv) [4.75%] 4.5% of Maryland taxable income of $3,001 through 15
76	76	$150,000; 16
77	77
78	78	(v) [5%] 4.75% of Maryland taxable income of $150,001 through 17
79	79	$175,000; 18
80	80
81	81	(vi) [5.25%] 5% of Maryland taxable income of $175,001 through 19
82	82	$225,000; 20
83	83
84	84	(vii) [5.5%] 5.35% of Maryland taxable income of $225,001 through 21
85	85	$300,000; and 22
86	86
87	87	(viii) 5.75% of Maryland taxable income in excess of $300,000. 23
88	88
89	89	10–217. 24
90	90
91	91	(a) (1) (i) Except as otherwise provided in this subsection, an individual 25
92	92	may elect to use the standard deduction to compute Maryland taxable income whether or 26
93	93	not the individual itemizes deductions on the individual’s federal income tax return in 27
94	94	determining federal taxable income. 28
95	95
96	96	(ii) If an individual elects to use the standard deduction on the 29 HOUSE BILL 839 3
97	97
98	98
99	99	[federal] MARYLAND income tax return, the individual may not take any itemized 1
100	100	deduction in § 10–218 of this subtitle. 2
101	101
102	102	10–218. 3
103	103
104	104	(a) [Only an individual who itemizes deductions on the individual’s federal 4
105	105	income tax return] AN INDIVIDUAL may elect to itemize deductions [on the individual’s 5
106	106	income tax return] TO COMPUTE MARYLAND TAXABLE INCO ME WHETHER OR NOT TH E 6
107	107	INDIVIDUAL ITEMIZES DEDUCTIONS ON THE IN DIVIDUAL’S FEDERAL INCOME TAX 7
108	108	RETURN IN DETERMININ G FEDERAL TAXABLE IN COME. 8
109	109
110	110	(b) [An] SUBJECT TO SUBSECTION (C) OF THIS SECTION , AN individual who 9
111	111	elects to itemize deductions is allowed as a deduction the sum of the individual’s federal 10
112	112	itemized deductions: 11
113	113
114	114	(1) limited and reduced as required under the Internal Revenue Code; 12
115	115
116	116	(2) further reduced by any amount deducted under § 170 of the Internal 13
117	117	Revenue Code for contributions of a preservation or conservation easement for which a 14
118	118	credit is claimed under § 10–723 of this title; and 15
119	119
120	120	(3) further reduced by the amount claimed as taxes on income paid to a 16
121	121	state or political subdivision of a state, after subtracting a pro rata portion of the reduction 17
122	122	to itemized deductions required under § 68 of the Internal Revenue Code. 18
123	123
124	124	(C) FOR AN INDIVIDUAL WHO DOES NOT ITEMIZE DED UCTIONS ON THE 19
125	125	INDIVIDUAL’S FEDERAL INCOME TAX RETURN BUT ELECTS TO ITEMIZE DEDUCTIONS 20
126	126	TO COMPUTE MARYLAND TAXABLE INCO ME, THE DEDUCTION ALLOWE D UNDER 21
127	127	SUBSECTION (B) OF THIS SECTION SHAL L BE DETERMINED AS I F THE INDIVIDUAL 22
128	128	ITEMIZED DEDUCTIONS ON THE INDIVIDUAL ’S FEDERAL INCOME TAX RETURN. 23
129	129
130	130	SECTION 2. AND BE IT FURTHER ENACTED, T hat this Act shall take effect July 24
131	131	1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021. 25
132	132