House Plan: Combined Reporting, Higher Corporate Income Tax, Sales Tax on Repair Services
The House of Delegates is moving their version of the tax package today. Key elements include:
- Imposing mandatory unitary combined reporting.
- Increasing the corporate income tax from 7 percent to 8.75 percent.
- Increasing the individual income tax for Marylanders earning more than $125,000
- 5.25 percent for individuals earning $125,000 and joint filers earning more than $175,000.
- 5.5 percent for individuals earning $150,000 and joint filers earning $200,000.
- 5.75 percent for individuals earning $200,000 and joint filers earning $250,000.
- Increasing the sales tax from 5 percent to 6 percent
- Increasing the hotel room rental tax from 5 percent to 10 percent
- Expanding the sales tax to cover repair services
- Laundering, cleaning, mending, altering, and fitting of clothing and other textiles
- Shoe repair
- Furniture, rug, carpet and upholstery cleaning and repair
- Computer and office machine repair
- Motor vehicle and boart repair of all types, but not including roadside assistance services
- Electrical and electric maintenance and repair of all types
- watch, clock and jewelry repair
- Repair and maintenance of any other tangible personal property
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