Maryland 2022 Regular Session

Maryland Senate Bill SB333 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	sb0333
6	6
7	7	SENATE BILL 333
8	8	Q3 2lr2138
9	9	SB 900/21 – B&T CF 2lr1631
10	10	By: Senator Young
11	11	Introduced and read first time: January 20, 2022
12	12	Assigned to: Budget and Taxation
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Income Tax – Subtraction Modification – Expenses of Medical Cannabis Grower, 2
19	19	Processor, Dispensary, or Independent Testing Laboratory 3
20	20
21	21	FOR the purpose of allowing a subtraction modification under the Maryland income tax for 4
22	22	certain expenses paid or incurred during the taxable year in carrying on a trade or 5
23	23	business as a certain medical cannabis grower, processor, dispensary, or 6
24	24	independent testing laboratory; and generally relating to an income tax subtraction 7
25	25	modification for certain expenses of medical cannabis growers, processors, 8
26	26	dispensaries, or independent testing laboratories. 9
27	27
28	28	BY repealing and reenacting, without amendments, 10
29	29	Article – Tax – General 11
30	30	Section 10–208(a) and 10–308(a) 12
31	31	Annotated Code of Maryland 13
32	32	(2016 Replacement Volume and 2021 Supplement) 14
33	33
34	34	BY adding to 15
35	35	Article – Tax – General 16
36	36	Section 10–208(bb) 17
37	37	Annotated Code of Maryland 18
38	38	(2016 Replacement Volume and 2021 Supplement) 19
39	39
40	40	BY repealing and reenacting, with amendments, 20
41	41	Article – Tax – General 21
42	42	Section 10–308(b) 22
43	43	Annotated Code of Maryland 23
44	44	(2016 Replacement Volume and 2021 Supplement) 24
45	45
46	46	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
47	47	That the Laws of Maryland read as follows: 26
48	48	2 SENATE BILL 333
49	49
50	50
51	51	Article – Tax – General 1
52	52
53	53	10–208. 2
54	54
55	55	(a) In addition to the modification under § 10–207 of this subtitle, the amounts 3
56	56	under this section are subtracted from the federal adjusted gross income of a resident to 4
57	57	determine Maryland adjusted gross income. 5
58	58
59	59	(BB) (1) THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION 6
60	60	INCLUDES THE AMOUNT OF ORDINARY AND NECE SSARY EXPENSES PAID OR 7
61	61	INCURRED DURING THE TAXABLE YEAR IN CARR YING ON A TRADE OR A BUSINESS AS 8
62	62	A MEDICAL CANNABIS G ROWER, PROCESSOR, OR DISPENSARY LICENS ED UNDER 9
63	63	TITLE 13, SUBTITLE 33 OF THE HEALTH – GENERAL ARTICLE OR AN INDEPENDENT 10
64	64	TESTING LABORATORY R EGISTERED IN ACCORDA NCE WITH § 13–3311 OF THE 11
65	65	HEALTH – GENERAL ARTICLE IF THE DEDUCT ION FOR ORDINARY AND NECESSARY 12
66	66	EXPENSES IS DISALLOW ED UNDER § 280E OF THE INTERNAL REVENUE CODE. 13
67	67
68	68	(2) THE SUBTRACTION ALLOW ED UNDER PARAGRAPH (1) OF THIS 14
69	69	SUBSECTION INCLUDES A REASONABLE ALLOWAN CE FOR SALARIES OR O THER 15
70	70	COMPENSATION FOR PER SONAL SERVICES ACTUA LLY RENDERED DURING THE 16
71	71	TAXABLE YEAR . 17
72	72
73	73	10–308. 18
74	74
75	75	(a) In addition to the modification under § 10–307 of this subtitle, the amounts 19
76	76	under this section are subtracted from the federal taxable income of a corporation to 20
77	77	determine Maryland modified income. 21
78	78
79	79	(b) The subtraction under subsection (a) of this section includes the amounts 22
80	80	allowed to be subtracted for an individual under: 23
81	81
82	82	(1) § 10–208(d) of this title (Enhanced agricultural management equipment 24
83	83	expenses); 25
84	84
85	85	(2) § 10–208(i) of this title (Reforestation or timber stand expenses); 26
86	86
87	87	(3) § 10–208(k) of this title (Wage expenses for targeted jobs); 27
88	88
89	89	(4) § 10–208(p) of this title (Elevator handrails in health care facilities); 28
90	90	[and] 29
91	91
92	92	(5) § 10–208(z) of this title (Donations to diaper banks and other charitable 30
93	93	entities); AND 31
94	94
95	95	(6) § 10–208(BB) OF THIS TITLE (TRADE OR BUSINESS EXP ENSES OF 32 SENATE BILL 333 3
96	96
97	97
98	98	MEDICAL CANNABIS GRO WER, PROCESSOR, DISPENSARY, OR INDEPENDENT 1
99	99	TESTING LABORATORY ). 2
100	100
101	101	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
102	102	1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021. 4
103	103
104	104