Bill > SB33

This bill requires the Office of the Comptroller and the Department of Legislative Services to conduct a comprehensive study of Maryland's business tax structure, with the goal of developing recommendations for fair and equitable taxation for businesses. The study will specifically examine several key areas, including the potential implementation of combined reporting using the "water's edge method" for corporate income taxes (which allows multistate corporations to consolidate their state tax returns using only their U.S. operations), analyze the experiences of other states that have already adopted combined reporting, assess the impact of such reporting on different industries, and explore alternative business tax approaches like gross receipts taxes, value-added taxes, and alternative minimum taxes. Additionally, the study will investigate improved methods for evaluating the effectiveness of tax policies designed to incentivize economic development. The agencies are required to complete this study and submit a report with their findings and recommendations to the Governor and General Assembly by December 15, 2026, with the bill taking effect on July 1, 2025.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0033?ys=2025RS