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.
Italics indicate opposite chamber/conference committee amendments.
*hb0634*
HOUSE BILL 634
Q3 (5lr2623)
ENROLLED BILL
— Ways and Means/Budget and Taxation —
Introduced by Delegates Wims and Mireku –North
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at _______________ _________ o’clock, ________M.
______________________________________________
Speaker.
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 2 HOUSE BILL 634
Section 6–237 1
Annotated Code of Maryland 2
(2018 Replacement Volume and 2024 Supplement) 3
BY adding to 4
Article – Tax – General 5
Section 2–120 6
Annotated Code of Maryland 7
(2022 Replacement Volume and 2024 Supplement) 8
BY repealing and reenacting, without amendments, 9
Article – Tax – General 10
Section 13–604 and 13–701(a) 11
Annotated Code of Maryland 12
(2022 Replacement Volume and 2024 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Tax – General 15
Section 13–606 and 13–714 16
Annotated Code of Maryland 17
(2022 Replacement Volume and 2024 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Criminal Procedure 21
6–237. 22
WHEN A DEFENDANT IS C ONVICTED OF OR PLEAD S GUILTY TO A CRIME AND IS 23
SENTENCED TO A TERM OF IMPRISONMENT OF A T LEAST 6 MONTHS BUT NOT MORE 24
THAN 10 YEARS, THE COURT SHALL INFO RM THE DEFENDANT ABO UT THE INCOME 25
TAX RECONCILIATION PROGRAM ESTABLISHED U NDER § 2–120 OF THE TAX – 26
GENERAL ARTICLE. 27
Article – Tax – General 28
2–120. 29
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 30
INDICATED. 31
(2) (I) “JUSTICE–INVOLVED INDIVIDUAL ” MEANS AN INDIVIDUAL 32
WHO IS CONVICTED OF OR PLEADS GUILTY TO A CRIME AND IS CURRE NTLY SERVING 33
OR, WITHIN THE IMMEDIATE LY PRECEDING 2 YEARS, HAS BEEN RELEASED AF TER 34 HOUSE BILL 634 3
SERVING A TERM OF IM PRISONMENT OF AT LEA ST 6 MONTHS BUT NOT MOR E THAN 1
10 YEARS IN A STATE OR FEDERAL CORR ECTIONAL FACILITY . 2
(II) “JUSTICE–INVOLVED INDIVIDUAL ” DOES NOT INCLUDE AN 3
INDIVIDUAL WHO IS CO NVICTED OF OR PLEADS GUILTY TO A CRIME TH AT WAS 4
COMMITTED WHILE THE INDIVIDUAL WAS HOLDI NG AN ELECTED PUBLIC OFFICE. 5
(3) “PROGRAM” MEANS THE INCOME TAX RECONCILIATION 6
PROGRAM. 7
(B) THERE IS AN INCOME TAX RECONCILIATION PROGRAM IN THE STATE 8
THAT IS ADMINISTERED BY THE COMPTROLLER . 9
(C) THE PURPOSE OF THE PROGRAM IS TO ALLOW J USTICE–INVOLVED 10
INDIVIDUALS WHO ARE UNABLE TO FILE A STATE INCOME TAX RETU RN WHILE 11
INCARCERATED TO : 12
(1) SUBJECT TO SUBSECTIO N (D) OF THIS SECTION , ESTABLISH 13
INSTALLMENT PAYMENT PLANS TO PAY ANY UNP AID INCOME TAX THAT IS DUE FOR 14
ANY TAXABLE YEAR DUR ING WHICH THE INDIVI DUAL IS INCARCERATED ; AND 15
(2) IF APPROVED FOR AN I NSTALLMENT PAYMENT P LAN, RECEIVE A 16
WAIVER FOR ANY INTER EST AND PENALTIES TH AT ACCRUE ON THE UNP AID INCOME 17
TAX. 18
(D) (1) FOR ANY TAXABLE YEAR THAT BEGINS AFTER DECEMBER 31, 19
2024, BUT BEFORE JANUARY 1, 2030, A JUSTICE–INVOLVED I NDIVIDUAL WHO 20
RECEIVES A NOTICE OF ASSESSMENT OF INCOME TAX DUE FOR A TAXABL E YEAR 21
DURING WHICH THE IND IVIDUAL IS INCARCERA TED MAY APPLY TO THE 22
COMPTROLLER FOR AN IN STALLMENT PAYMENT PL AN. 23
(2) IF THE COMPTROLLER DETERMINE S THAT THE 24
JUSTICE–INVOLVED IN DIVIDUAL IS ELIGIBLE TO PARTICIPATE IN TH E PROGRAM, 25
THE COMPTROLLER SHALL EST ABLISH AN INSTALLMEN T PAYMENT PLAN THAT 26
ALLOWS THE INDIVIDUA L TO PAY THE UNPAID INCOME TAX OVER A PE RIOD NOT 27
EXCEEDING 10 YEARS. 28
(3) IF A JUSTICE–INVOLVED INDIVIDUAL IS APPROVED FOR AN 29
INSTALLMENT PAYMENT PLAN UNDER THE PROGRAM, THE COMPTROLLER SHALL 30
WAIVE ANY INTEREST A ND PENALTIES THAT AC CRUE ON THE UNPAID I NCOME TAX 31
DUE. 32
(E) (1) TO CARRY OUT THE PROGRAM, THE COMPTROLLER SHALL : 33
4 HOUSE BILL 634
(I) IN COLLABORATION WIT H THE DEPARTMENT OF PUBLIC 1
SAFETY AND CORRECTIONAL SERVICES, DEVELOP AN AWARENESS CAMPAIGN TO 2
INFORM THE PUBLIC AN D JUSTICE–INVOLVED INDIVIDUALS ABOUT THE PROGRAM; 3
AND 4
(II) ADOPT REGULATIONS . 5
(2) THE REGULATIONS REQUI RED UNDER PARAGRAPH (1)(II) OF THIS 6
SUBSECTION MAY INCLU DE INCOME LIMITATION S THAT ESTABLISH ELI GIBILITY 7
FOR THE PROGRAM. 8
(F) ON OR BEFORE DECEMBER 1, 2026, AND EACH DECEMBER 1 9
THEREAFTER , THE COMPTROLLER SHALL REP ORT TO THE GENERAL ASSEMBLY, IN 10
ACCORDANCE W ITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE 11
IMPACT OF THE PROGRAM. 12
13–604. 13
(a) The rate of interest for each month or fraction of a month is the percent equal 14
to one–twelfth of the annual interest rate that the Comptroller sets for the calendar year 15
under subsection (b) of this section. 16
(b) On or before October 1 of each year, the Comptroller shall set the annual 17
interest rate for the next calendar year on refunds and money owed to the State as the 18
percent that equals the greater of: 19
(1) (i) 13% for 2016; 20
(ii) 12% for 2017; 21
(iii) 11.5% for 2018; 22
(iv) 11% for 2019; 23
(v) 10.5% for 2020; 24
(vi) 10% for 2021; 25
(vii) 9.5% for 2022; and 26
(viii) 9% for 2023 and each year thereafter; or 27
(2) 3 percentage points above the average prime rate of interest quoted by 28
commercial banks to large businesses during the State’s previous fiscal year, based on 29
determination by the Board of Governors of the Federal Reserve Bank. 30
HOUSE BILL 634 5
13–606. 1
(A) For reasonable cause, a tax collector may waive interest on unpaid tax. 2
(B) THE COMPTROLLER SHALL WAI VE THE AMOUNT OF ANY INTEREST 3
ASSESSED ON UNPAID I NCOME TAX DUE UNDER THIS ARTICLE IF: 4
(1) THE UNPAID INCOME TA X IS DUE FOR A TAXAB LE YEAR DURING 5
WHICH THE PERSON OWI NG IS INCARCERATED ; AND 6
(2) THE PERSON APPLIES F OR AND IS PLACED ON AN INSTALLMENT 7
PAYMENT PLAN UNDER T HE INCOME TAX RECONCILIATION PROGRAM 8
ESTABLISHED UNDER § 2–120 OF THIS ARTICLE. 9
13–701. 10
(a) Except as otherwise provided in this subtitle, if a person or governmental unit 11
fails to pay a tax when due under this article, the tax collector shall assess a penalty not 12
exceeding 10% of the unpaid tax. 13
13–714. 14
(A) For reasonable cause, a tax collector may waive a penalty under this subtitle. 15
(B) THE COMPTROLLER SHALL WAI VE ANY PENALTY UNDER THIS S UBTITLE 16
FOR A PERSON’S FAILURE TO PAY INC OME TAX WHEN DUE UND ER THIS ARTICLE IF: 17
(1) THE UNPAID INCOME TA X IS DUE FOR A TAXAB LE YEAR DURING 18
WHICH THE PERSON OWI NG IS INCARCERATED ; AND 19
(2) THE PERSON APPLIES F OR AND IS PLACED ON AN INSTALLMENT 20
PAYMENT PLAN UNDER T HE INCOME TAX RECONCILIATION PROGRAM 21
ESTABLISHED UNDER § 2–120 OF THIS ARTICLE. 22
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 23
1, 2025. 24