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MARYLAND GOVERNOR PROPOSES TAX RELIEF PACKAGE, INCLUDING CHANGES FOR BUSINESSES AND RETIREES

MARYLAND GOVERNOR PROPOSES TAX RELIEF PACKAGE, INCLUDING CHANGES FOR BUSINESSES AND RETIREES

Annual filing fee relief

Governor Larry Hogan proposed legislation that eliminates the filing fee for businesses that submit their annual report online. Maryland would be the first state in the country to provide a zero-fee option for businesses for this type of filing, which is required to be submitted every year with the Maryland State Department of Assessments and Taxation (SDAT).

Corporations, LLCs, and other legal entities are currently required to file annual reports with SDAT every year for $300. The administration's bill would not only amend Maryland’s annual report fee structure to be among the most competitive in the nation, it would also incentivize online filing, which is a more efficient and cost-effective filing method for businesses and the state.

Tax relief for retirees

In addition, the Governor proposed the Retirement Tax Reduction Act, which would eliminate 100% of state retirement taxes in Maryland, providing $4 billion in cumulative relief to retirees. Tax relief would be phased in over time using an income exclusion and would take effect in tax year 2022.

UHY will continue to monitor these and any other potential tax law changes and provide updates as new information is released. If you have any questions about how this affects you, please reach out to a UHY professional.

 

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