EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0634*
HOUSE BILL 634
Q3 5lr2623
CF SB 295
By: Delegates Wims and Mireku–North
Introduced and read first time: January 23, 2025
Assigned to: Ways and Means
Committee Report: Favorable
House action: Adopted with floor amendments
Read second time: March 2, 2025
CHAPTER ______
AN ACT concerning 1
Income Tax – Income Tax Reconciliation Program – Established 2
(Maryland Fair Taxation for Justice–Involved Individuals Act) 3
FOR the purpose of establishing the Income Tax Reconciliation Program in the State to 4
allow certain justice–involved individuals to establish payment plans and receive a 5
waiver of any interest and penalties that accrue for unpaid income tax due for certain 6
taxable years; requiring the Comptroller to administer the Program and waive 7
certain interest and penalties for participants in the Program; requiring the 8
Comptroller, in collaboration with the Department of Public Safety and Correctional 9
Services, to develop an awareness campaign to inform the public and 10
justice–involved individuals about the Program; and generally relating to the Income 11
Tax Reconciliation Program for justice–involved individuals. 12
BY adding to 13
Article – Criminal Procedure 14
Section 6–237 15
Annotated Code of Maryland 16
(2018 Replacement Volume and 2024 Supplement) 17
BY adding to 18
Article – Tax – General 19
Section 2–120 20
Annotated Code of Maryland 21
(2022 Replacement Volume and 2024 Supplement) 22
2 HOUSE BILL 634
BY repealing and reenacting, without amendments, 1
Article – Tax – General 2
Section 13–604 and 13–701(a) 3
Annotated Code of Maryland 4
(2022 Replacement Volume and 2024 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – Tax – General 7
Section 13–606 and 13–714 8
Annotated Code of Maryland 9
(2022 Replacement Volume and 2024 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Criminal Procedure 13
6–237. 14
WHEN A DEFENDANT IS C ONVICTED OF OR PLEAD S GUILTY TO A CRIME AN D IS 15
SENTENCED TO A TERM OF IMPRISONMENT OF A T LEAST 6 MONTHS BUT NOT MORE 16
THAN 10 YEARS, THE COURT SHALL INFO RM THE DEFENDANT ABO UT THE INCOME 17
TAX RECONCILIATION PROGRAM ESTABLISHED U NDER § 2–120 OF THE TAX – 18
GENERAL ARTICLE. 19
Article – Tax – General 20
2–120. 21
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 22
INDICATED. 23
(2) (I) “JUSTICE–INVOLVED INDIVIDUAL ” MEANS AN INDIVIDUAL 24
WHO IS CONVICTED OF OR PLEADS GUILTY TO A CRIME AND IS CURRE NTLY SERVING 25
OR, WITHIN THE IMMEDIATELY PRECEDIN G 2 YEARS, HAS BEEN RELEASED AF TER 26
SERVING A TERM OF IM PRISONMENT OF AT LEA ST 6 MONTHS BUT NOT MORE THAN 27
10 YEARS IN A STATE OR FEDERAL CORR ECTIONAL FACILITY . 28
(II) “JUSTICE–INVOLVED INDIVIDUAL ” DOES NOT INCLUDE AN 29
INDIVIDUAL WHO IS CONVICTED OF OR PLEA DS GUILTY TO A CRIME THAT WAS 30
COMMITTED WHILE THE INDIVIDUAL WAS HOLDI NG AN ELECTED PUBLIC OFFICE. 31
(3) “PROGRAM” MEANS THE INCOME TAX RECONCILIATION 32
PROGRAM. 33
HOUSE BILL 634 3
(B) THERE IS AN INCOME TAX RECONCILIATION PROGRAM IN THE STATE 1
THAT IS ADMINISTERED BY THE COMPTROLLER . 2
(C) THE PURPOSE OF THE PROGRAM IS TO ALLOW J USTICE–INVOLVED 3
INDIVIDUALS WHO ARE UNABLE TO FILE A STATE INCOME TAX RETU RN WHILE 4
INCARCERATED TO : 5
(1) SUBJECT TO SUBSECTIO N (D) OF THIS SECTION , ESTABLISH 6
INSTALLMENT PAYMEN T PLANS TO PAY ANY U NPAID INCOME TAX THA T IS DUE FOR 7
ANY TAXABLE YEAR DUR ING WHICH THE INDIVI DUAL IS INCARCERATED ; AND 8
(2) IF APPROVED FOR AN I NSTALLMENT PAYMENT P LAN, RECEIVE A 9
WAIVER FOR ANY INTER EST AND PENALTIES TH AT ACCRUE ON THE UNP AID INCOME 10
TAX. 11
(D) (1) FOR ANY TAXABLE YEAR THAT BEGINS AFTER DECEMBER 31, 12
2024, BUT BEFORE JANUARY 1, 2030, A JUSTICE–INVOLVED INDIVIDUAL WHO 13
RECEIVES A NOTICE OF ASSESSMENT OF INCOME TAX DUE FOR A TAXABL E YEAR 14
DURING WHICH THE IND IVIDUAL IS INCARCERA TED MAY APPLY T O THE 15
COMPTROLLER FOR AN IN STALLMENT PAYMENT PL AN. 16
(2) IF THE COMPTROLLER DETERMINE S THAT THE 17
JUSTICE–INVOLVED INDIVIDUAL IS ELIGIBLE TO PARTI CIPATE IN THE PROGRAM, 18
THE COMPTROLLER SHALL EST ABLISH AN INSTALLMEN T PAYMENT PLAN THAT 19
ALLOWS THE INDIVIDUA L TO PAY THE UNPAID IN COME TAX OVER A PERI OD NOT 20
EXCEEDING 10 YEARS. 21
(3) IF A JUSTICE–INVOLVED INDIVIDUAL IS APPROVED FOR AN 22
INSTALLMENT PAYMENT PLAN UNDER THE PROGRAM, THE COMPTROLLER SHALL 23
WAIVE ANY INTEREST A ND PENALTIES THAT AC CRUE ON THE UNPAID I NCOME TAX 24
DUE. 25
(E) (1) TO CARRY OUT THE PROGRAM, THE COMPTROLLER SHALL : 26
(I) IN COLLABORATION WIT H THE DEPARTMENT OF PUBLIC 27
SAFETY AND CORRECTIONAL SERVICES, DEVELOP AN AWARENESS CAMPAIGN TO 28
INFORM THE PUBLIC AN D JUSTICE–INVOLVED INDIVIDUALS ABOUT THE PROGRAM; 29
AND 30
(II) ADOPT REGULATIONS . 31
(2) THE REGULATIONS REQUI RED UNDER PARAGRAPH (1)(II) OF THIS 32
SUBSECTION MAY INCLU DE INCOME LIMITATION S THAT ESTABLISH ELI GIBILITY 33
FOR THE PROGRAM. 34 4 HOUSE BILL 634
(F) ON OR BEFORE DECEMBER 1, 2026, AND EACH DECEMBER 1 1
THEREAFTER , THE COMPTROLLER SHALL REP ORT TO THE GENERAL ASSEMBLY, IN 2
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE 3
IMPACT OF THE PROGRAM. 4
13–604. 5
(a) The rate of interest for each month or fraction of a month is the percent equal 6
to one–twelfth of the annual interest rate that the Comptroller sets for the calendar year 7
under subsection (b) of this section. 8
(b) On or before October 1 of each year, the Comptroller shall set the annual 9
interest rate for the next calendar year on refunds and money owed to the State as the 10
percent that equals the greater of: 11
(1) (i) 13% for 2016; 12
(ii) 12% for 2017; 13
(iii) 11.5% for 2018; 14
(iv) 11% for 2019; 15
(v) 10.5% for 2020; 16
(vi) 10% for 2021; 17
(vii) 9.5% for 2022; and 18
(viii) 9% for 2023 and each year thereafter; or 19
(2) 3 percentage points above the average prime rate of interest quoted by 20
commercial banks to large businesses during the State’s previous fiscal year, based on 21
determination by the Board of Governors of the Federal Reserve Bank. 22
13–606. 23
(A) For reasonable cause, a tax collector may waive interest on unpaid tax. 24
(B) THE COMPTROLLER SHALL WAI VE THE AMOUNT OF ANY INTEREST 25
ASSESSED ON UNPAID I NCOME TAX DUE UNDER THIS ARTICLE IF: 26
(1) THE UNPAID INCOME TA X IS DUE FOR A TAXABLE YE AR DURING 27
WHICH THE PERSON OWI NG IS INCARCERATED ; AND 28
HOUSE BILL 634 5
(2) THE PERSON APPLIES F OR AND IS PLACED ON AN INSTALLMENT 1
PAYMENT PLAN UNDER T HE INCOME TAX RECONCILIATION PROGRAM 2
ESTABLISHED UNDER § 2–120 OF THIS ARTICLE. 3
13–701. 4
(a) Except as otherwise provided in this subtitle, if a person or governmental unit 5
fails to pay a tax when due under this article, the tax collector shall assess a penalty not 6
exceeding 10% of the unpaid tax. 7
13–714. 8
(A) For reasonable cause, a tax collector may waive a penalty under this subtitle. 9
(B) THE COMPTROLLER SHALL WAI VE ANY PENALTY UNDER THIS SUBTITLE 10
FOR A PERSON’S FAILURE TO PAY INC OME TAX WHEN DUE UND ER THIS ARTICLE IF: 11
(1) THE UNPAID INCOME TA X IS DUE FOR A TAXAB LE YEAR DURING 12
WHICH THE PERSON OWI NG IS INCARCERATED ; AND 13
(2) THE PERSON APPLIES F OR AND IS PLACED ON AN INSTALLMENT 14
PAYMENT PLAN UNDER T HE INCOME TAX RECONCILIATION PROGRAM 15
ESTABLISHED UNDER § 2–120 OF THIS ARTICLE. 16
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 17
1, 2025. 18
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.