| 1 | 1 | | |
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| 2 | 2 | | |
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| 3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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| 4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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| 5 | 5 | | *sb0033* |
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| 6 | 6 | | |
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| 7 | 7 | | SENATE BILL 33 |
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| 8 | 8 | | Q3, Q7 5lr0662 |
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| 9 | 9 | | (PRE–FILED) |
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| 10 | 10 | | By: Senator Lewis Young |
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| 11 | 11 | | Requested: September 6, 2024 |
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| 12 | 12 | | Introduced and read first time: January 8, 2025 |
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| 13 | 13 | | Assigned to: Budget and Taxation |
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| 14 | 14 | | |
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| 15 | 15 | | A BILL ENTITLED |
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| 16 | 16 | | |
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| 17 | 17 | | AN ACT concerning 1 |
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| 18 | 18 | | |
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| 19 | 19 | | Office of the Comptroller and Department of Legislative Services – Maryland 2 |
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| 20 | 20 | | Business Taxes – Study 3 |
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| 21 | 21 | | |
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| 22 | 22 | | FOR the purpose of requiring the Office of the Comptroller and the Department of 4 |
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| 23 | 23 | | Legislative Services to study and make recommendations regarding the State’s 5 |
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| 24 | 24 | | business tax structure and the imposition of combined reporting; and generally 6 |
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| 25 | 25 | | relating to Maryland business taxes. 7 |
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| 26 | 26 | | |
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| 27 | 27 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAN D, 8 |
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| 28 | 28 | | That: 9 |
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| 29 | 29 | | |
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| 30 | 30 | | (a) The Office of the Comptroller and the Department of Legislative Services shall 10 |
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| 31 | 31 | | study and make recommendations regarding the State’s current business tax structure and 11 |
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| 32 | 32 | | changes to the State’s business tax structure to provide fair and equitable taxation for all 12 |
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| 33 | 33 | | corporations and other business entities doing business in the State. 13 |
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| 34 | 34 | | |
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| 35 | 35 | | (b) In conducting the study, the Office of the Comptroller and the Department of 14 |
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| 36 | 36 | | Legislative Services shall review and evaluate the following: 15 |
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| 37 | 37 | | |
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| 38 | 38 | | (1) the imposition of combined reporting using the “water’s edge method” 16 |
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| 39 | 39 | | under the corporate income tax for unitary groups of affiliated corporations; 17 |
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| 40 | 40 | | |
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| 41 | 41 | | (2) the experiences and outcomes of the states that have already 18 |
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| 42 | 42 | | implemented combined reporting; 19 |
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| 43 | 43 | | |
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| 44 | 44 | | (3) the effects of implementing combined reporting on different industries; 20 |
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| 45 | 45 | | |
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| 46 | 46 | | (4) the imposition of other types of business taxes, in lieu of or in addition 21 |
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| 47 | 47 | | to the current taxes imposed, including gross receipts taxes, value added taxes, and 22 |
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| 48 | 48 | | alternative minimum taxes; and 23 2 SENATE BILL 33 |
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| 49 | 49 | | |
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| 50 | 50 | | |
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| 51 | 51 | | |
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| 52 | 52 | | (5) improved methods for evaluation of the effectiveness and efficiency of 1 |
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| 53 | 53 | | tax policies intended as economic development incentives. 2 |
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| 54 | 54 | | |
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| 55 | 55 | | (c) On or before December 15, 2026, the Office of the Comptroller and the 3 |
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| 56 | 56 | | Department of Legislative Services shall report their findings and recommendations to the 4 |
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| 57 | 57 | | Governor and, in accordance with § 2–1257 of the State Government Article, to the General 5 |
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| 58 | 58 | | Assembly. 6 |
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| 59 | 59 | | |
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| 60 | 60 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7 |
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| 61 | 61 | | 1, 2025. 8 |
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| 62 | 62 | | |
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