Entrepreneurs forming a company in Maryland may not have to face combined reporting

The Maryland Business Tax Reform Commission recently voted against a proposed method of taxing corporate profits.

Combined reporting, a system that aims to stop businesses from filtering Maryland revenue to corporations in states with lower tax rates, has been highlighted by some as a way to increase state revenue. But, the Tax Reform Commission voted 12-4 that the General Assembly should not pursue the legislation, the Maryland Gazette reports.

Other business organizations have also come out against combined reporting. Some have cited a study issued by the comptroller’s office that showed that Maryland would have lost $13 to $50 million in 2008 if combined reporting was in place, reports the Baltimore Sun. However, the news source also notes a separate report painted a very different picture, claiming the state could have made an additional $170 million if the proposed legislation was in place in 2007.

“We continue to oppose combined reporting,” said William R. Burns, a spokesman for the Maryland Chamber of Commerce, told the Baltimore Sun. “The Maryland General Assembly should reject business tax law changes that would make Maryland less competitive.”

Find Us:

Incfile Team

The Incfile team is here to provide small business owners and entrepreneurs with the tips needed to to form an LLC or corporation, and grow your business.
Find Us: