Maryland?s new year begins with cigarette, vehicle-titling, and corporate tax increase despite a last-minute, Republican-led effort to have them declared illegal.
Republican leaders, however, won a victory Monday in their court battle over the validity of several tax increases that take effect this week after Maryland?s highest court rejected state attorneys? request to halt the deposition of House of Delegates Chief Clerk Mary Monahan. The interview ? where attorneys for five Republican lawmakers and a local business owner hoped to learn more about a break during November?s special General Assembly session ? is rescheduled for Wednesday or Thursday.
In their lawsuit, the GOP lawmakers argue the Senate adjourned for too long during the session without permission from the House, violating the state constitution and invalidating any legislation passed, including $1.3 billion in tax increases.
In their filings, state attorneys called the Monahan deposition “intrusive and pointless” and said lawmakers and their aides ? including Monahan ? are exempt from testifying about legislative activity.
The state?s attorney general also filed a motion in Carroll County Circuit Court opposing a request to delay implementation of the tax increases until after the court battle.
Judge Thomas Stansfield has yet to rule on the motion.
State attorneys said preparation for the tax increases was long and involved and “can?t be stopped instantly.”
“Chaos in the business community would be the likely, if not inevitable, result of the last-minute stay that [the Republican lawmakers] request,” they wrote.
The cigarette tax increased today from $1 to $2, the vehicle titling tax rose from 5 to 6 percent, and the corporate income tax rose from 7 to 8.25 percent.
The sales tax jumps from 5 to 6 percent Thursday.
What?s next
Maryland?s sales tax increases from 5 to 6 percent Thursday.
