Andy Green has posted a great summary of the expected changes to the Governor’s tax plan on the Baltimore Sun’s General Assembly Blog. View the complete post here.

Changes include:

• Reducing the proposed top individual income tax rates from 6 percent and 6.5 percent in the Governor’s proposal to 5 percent and 5.5 percent.

• Dedicating a portion of the sales tax increase, from 5 percent to 6 percent, to transportation and perhaps eliminating the proposal to index the gas tax.

• Eliminating the property tax cut proposal.

• Increasing the corporate income tax from 7 percent to 8 percent but eliminating combined reporting.

• Changing the services in the proposed sales tax expansion to remove property management, health clubs, etc. and add computer services and a few other items.

With regards to the changes in the proposal to expand the sales tax to cover some services, Green correctly noted that computer service companies have not had the opportunity to state their case against the expansion of the sales tax:

Removing property management, health club memberships, tanning, massage therapy and other new services from a proposed expansion of the sales tax. Computer services and a few other items would be subjected to the levy instead. Realtors, gym owners and others objected vigorously to their inclusion under O’Malley’s plan, but computer services companies - who were not considered for taxation under any bills before the General Assembly in the current special session or in this year’s regular session - have not had a chance to state their case. Taxing them could net the state as much as $250 million a year.