A Maryland commission is finalizing its recommendations to lawmakers that the state’s business tax structure remain largely unchanged from last year.
At its last meeting, the group voted down nearly every proposal for change that members have submitted over the past two years — including a recommendation that would require combined reporting for businesses that don’t operate solely in Maryland.
The much-debated change — which 13 of 17 commission members voted against — would have required those businesses to pay a portion of their combined profits to Maryland, based on how much property, payroll and revenues were reported in the state.
Twenty-three states currently require combined reporting.
The commission also voted down a proposal requiring the state Department of Business and Economic Development to increase its transparency in reporting expenditures.
DBED secretary Christian Johansson said the reporting process could become “too cumbersome to be an effective tool.”
The committee settled on recommending that a workgroup address a time- and cost-effective compromise.
“It seems like a cop out,” said commission member James F. Kercheval. “Two years of work to just say ‘don’t do anything.'”
