Legislation, SB 444 and HB 664, to moderate the onerous corporate reporting requirements passed during the November 2007 special session is moving through the legislature.

During the special session, the Maryland General Assembly passed legislation creating the Maryland Business Tax Reform Commission. The Commission will review and evaluate the state’s current business tax structure and make recommendations for changes. Policies to be studied include mandatory unitary combined reporting, gross receipts taxes, value added taxes, alternative minimum taxes, and more.

While the Maryland Chamber was pleased the study arose as an alternative to mandatory unitary combined reporting, the legislation went beyond what the government needs to do further analysis. As part of the study, the legislation imposes extensive new reporting requirements on corporations. No other state imposes reporting requirements that are this extensive.

Sen. Nancy King (D-Dist. 39) and Del. Kumar Barve (D. Dist. 17) introduced legislation to alleviate some of the business community’s concerns about the reporting requirements. The Maryland Chamber strongly supports the bills. Both bills have passed second reading. Hopefully they will achieve final passage today.

Today is “crossover day.” By the end of the day, each chamber is supposes to send to the other chamber, those bills it intends to pass favorably. Any bill not passed by one chamber by the end of the day will have to overcome additional procedural hurdles.