Update: Tax Relief and Fee Reduction Bill Changes

Date: April 06, 2016

Gov. Hogan’s legislative agenda has not been kept fully intact.

Update: Tax Relief and Fee Reduction Bill Changes

Tax and mandate relief has been a priority this session. Here’s a look at the status of two important proposals.

Fee Reduction (House Bill 459)

HB459, as part of Gov. Hogan’s legislative package, began as a proposal to reduce or eliminate a variety of fees associated with professional licenses and permits. Included were reductions to the Maryland Home Improvement Commission’s license and application fees and cuts to Weights and Measures fees paid by the auto repair industry. The bill has been amended, whittling down the fee reductions to birth and death certificates. It passed the House on Crossover Day and, at this writing, was awaiting passage from the Senate Budget and Taxation committee.

Income Tax Relief (Senate Bill 841/House Bill 1250)

These bills, which NFIB supports, are stalled in their respective chambers, at this writing. Under the bills, small business owners filing taxes as a pass-through entity—sole proprietorships, S-corporations or limited liability companies—would have the first $20,000 of their income exempt from state income tax. The exemption would apply to individuals claiming $200,000 or less and married couples claiming $250,000 or less in total income.

According to a Washington Post report after Crossover Day, the Senate has passed a tax-relief bill that slightly reduces the top four income tax bracket rates, slightly increases the personal income tax exemption for middle-income taxpayers over four years and expands the earned income tax credit.

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